Universal positive pay database method, system, and computer useable medium

ABSTRACT

A Universal Positive Pay Database (UPPD) method, system, and/or computer useable medium to reduce financial transaction fraud. A UPPD database is configured to store thereon transaction records associated with financial transactions corresponding to customers of the UPPD database. A particular financial transaction is initiated between a payer and a payee by providing parameters associated with the financial transaction to the UPPD database. An Issue File is provided to the UPPD database that includes parameters associated with the particular financial transaction. A correspondence determination is made between the financial transaction parameters from the Issue File and the financial transaction parameters provided to the UPPD database at every point along the financial transaction clearing process. The customer, payer, payee, payee bank, drawee bank, and banking institutions intermediate the payee bank and the drawee bank are able to access the correspondence determination at every point along the financial transaction clearing process.

CROSS-REFERENCE TO RELATED APPLICATIONS

[0001] This application is a continuation in part of U.S. patentapplication Ser. No. 09/983,065, filed Oct. 23, 2001, which claims thebenefit of U.S. Provisional Patent Application Serial No. 60/243,722,filed Oct. 30, 2000, each of which is incorporated herein by reference.

BACKGROUND OF THE INVENTION

[0002] 1. Field of the Invention

[0003] The present invention relates to a Universal Positive PayDatabase method, system, and/or computer useable medium to reduce checkfraud and verify checks, other financial instruments and documents.

[0004] 2. Description of Related Art

[0005] Paper checks have been ingrained into our society for over onehundred years. Many young people take their first steps into financialadulthood with the opening of their first checking account. Consumerscontinue to write an average of 25 checks per month. Paper checks giveconsumers the ability to make purchases and live day to day withoutcarrying around cash. It gives them the freedom to make purchases beforedeposits are recorded at their bank and earn interest beforewithdrawals. Unfortunately, all this freedom comes with a price—CheckFraud. With the increase in home computer technology and high qualitylaser printers, paper checks can be easily created, even to the point offooling so called experts in the field. Law enforcement agencies havereported that check fraud is the most under-reported white color crime.Estimates range as high as 50 billion annually. Out of the 180 millionchecks written daily, 1.2 million are fraudulent. That is less than 1%,but enough to amount to a viral and very expensive problem. Federal lawenforcement agencies have seen check fraud go from the individual actingalone to gangs acting in concert, stealing millions.

[0006] Besides all the fraud possibilities, paper checks are costly foreveryone—financial institutions, retailers and ultimately consumers. Asthe use of paper checks continues to grow at 2-3% annually the problemwill not go away, it will only increase. We need a solution encompassingall contact points in the processing of a paper check, a debit card, anda paper debit check, a complete and connective solution that does notjust transfer the responsibility of check fraud, but stops the fraud.

[0007] Many techniques have been developed to inhibit check fraud, suchas Positive Pay, different forms of electronic check verification andelectronic check presentment with and without Automated Clearing House(ACH), but none eliminate fraud from the use of paper checks. All ofthese electronic methods have taken a positive step in the handling ofpaper checks. Each has made the process more efficient and less costlyby not having to handle paper checks. One area where they all fall shortis in the elimination of check fraud. Check electronification places theburden of check fraud on the other parties in the process. This may begood for an individual in the process, but not everyone. If a worthlesscheck is processed or an account is closed pre-maturely, someone in theprocess is responsible.

[0008] Positive Pay is a technique where each corporate customer sendsan electronic list of their outstanding checks to their financialinstitution. The corporate customer's financial institution then uses anIssue File to validate each check as it clears the financialinstitution. The Issue File includes parameters associated with theoutstanding checks of each corporate customer, such as check amounts,account numbers, routing numbers, check dates, signatures, etc. If acheck does not validate correctly—the financial institution requestsproper authorization from the corporation on how to handle the check.There are two main problems that exist here: (1) Positive Pay only workswith the financial institutions corporate customers. No other entity inthe process has knowledge of the Positive Pay matching capabilities.Under this scenario the person presenting the worthless check willreceive the money and the merchant or his financial institution is lefttrying to recover the loss. (2) There are no standards for Positive Pay.Each financial institution implements its own Positive Pay rules andfile formats. In essence, each financial institution is creating anisland for itself and its corporate customers.

[0009] Check electronification means a number of different things, fromverifying the check writers' history against a database to transmittingthe account and transaction information electronically to aclearinghouse for settlement. The transmission can be as simple as themagnetic ink character recognition (MICR) line of the check to a fullimage of the check.

[0010] Check electronification processes try to verify that funds willbe available when the check clears the bank account. The problem is thatthere is no check electronification process where the whole checkprocessing system has knowledge of the other financial institutions'position. Prior to clearing the check the account could be closed, orfunds withdrawn making the check have non-sufficient funds (NSF). Thepaper check is eliminated in the process, which will save financialinstitution time and money, however check fraud continues. Theverification database is only as good as the information available. Awarranty system is sometimes put in place to guarantee the merchantreceives his money, but again someone in the check process will beresponsible for the worthless check. The cost of check fraud continuesto be passed along the clearing chain, ultimately to the consumer.

[0011] Therefore, a need exists for a Universal Positive Pay Database(UPPD) method, system, and/or computer useable medium that can beuniversally applied in order to result in a more secure authorizationsystem. The related art is represented by the following references ofinterest.

[0012] U.S. Pat. No. 4,109,238 issued Aug. 22, 1978 to Robert V.Creekmore, outlines the use of a check verification system for providingcustomer operated verification of checks at point of sale locations. Thesystem enables a customer to verify several possible kinds of checkingfunctions, including verification of payroll or government checks aswell as certain types of personal checks for cash. The system utilizes anumber of local point of use terminals which are operated by thecustomer and which communicate with a remotely located transactionprocessor, including a positive file of customers who are entitled toverify checks. The Creekmore patent does not suggest a UPPD method,system, and/or computer useable medium according to the claimedinvention.

[0013] U.S. Pat. No. 5,237,620, issued Aug. 17, 1993 to David W. Deatonet al., describes a check reader and method for reading a check MICRcode having a plurality of fields including a checking account number. Areader head detects a MICR code on a check and generates electricalsignals representative of the MICR code. Circuitry omits portions of theMICR code except a predetermined portion thereof, such that thepredetermined portion of the MICR code can be detected regardless of itslocation within the MICR code fields. The Deaton et al. patent does notsuggest a UPPD method, system, and/or computer useable medium accordingto the claimed invention.

[0014] U.S. Pat. No. 5,586,222, issued Dec. 17, 1996 to Wei Zhang etal., describes a process for associating and storing an input pattern ortwo-dimensional pattern with use of associative matrices having the samesize as that of an input pattern without converting it into aone-dimensional pattern, wherein the associative matrices are generatedfrom the input pattern so as to maximize the Hamming distance betweenstate invariants which correspond to each different storage pattern, andthereby a power of categorization that corresponds to each storagepattern can be enhanced, thus increasing the storage capability androbustness. The Zhang et al. patent does not suggest a UPPD method,system, and/or computer useable medium according to the claimedinvention.

[0015] U.S. Pat. No. 5,677,955 issued Oct. 14, 1997 to John Doggett etal. outlines the use of an electronic instrument created in acomputer-based method for effecting a transfer of funds from an accountof a payer in a funds-holding institution to a payee. The electronicinstrument includes an electronic signature of the payer, digitalrepresentations of payment instructions, the identity of the payer, theidentity of the payee and the identity of the funds-holding institution.A digital representation of a verifiable certificate by the institutionof the authenticity of the instrument of the instrument is appended tothe instrument.

[0016] The Doggett et al. method and apparatus are associatedessentially with a bank specific Positive Pay system, as opposed to theUniversal Positive Pay Database system according to the claimedinvention, wherein all parties are able to verify check registerinformation of a customer, e.g., a payer, at every point along the pathof a check clearing process, e.g., at the point of sale, at the payee'sbank, at a Federal Reserve Clearing Division or a clearing house, and atthe payer's bank. Bank specific Positive Pay systems restrict access bya customer to check register information for the customer. The Doggettet al. patent does not suggest a UPPD method, system, and/or computeruseable medium according to the claimed invention.

[0017] U.S. Pat. No. 5,801,366 issued Sep. 1, 1998 to Wade L. Funk etal., outlines the use of an automated check processing system whichincludes an input device receiving checking account information and acheck amount of a check provided for payment in a transaction. Atransaction database coupled to the input device then electronicallyreceives and stores the checking account information and check amount,which are then downloaded to a power encoder. The power encoder receiveschecking account information and check amounts for transactionsoccurring over a predetermined transaction period and then matches thechecks with the electronic checking account information and checkamounts.

[0018] The Funk et al. system is similar to the system described byDoggett et al., in that Funk et al. describes a bank specific PositivePay system, as opposed to a Universal Positive Pay Database systemaccording to the claimed invention, wherein all parties are able toverify check register information of a customer at every point along thepath of a check clearing process. The Funk et al. patent does notsuggest a UPPD method, system, and/or computer useable medium accordingto the claimed invention.

[0019] U.S. Pat. No. 6,036,344 issued Mar. 14, 2000 to David M.Goldenberg outlines the use of an apparatus and method for counteringfraudulent check cashing schemes that includes a central processingcenter that is connected to a plurality of banks through securecommunication channels. Each check drawn against the banks hasinformation stored therein, with that information corresponding to aplurality of digits and characters for the central processing center.When a check is presented at a bank, the information on the check issent through one of the secure communication channels to the centralprocessing system, which determines whether or not the account hassufficient funds to allow the check to be drawn against the account. TheGoldenberg patent does not suggest a UPPD method, system, and/orcomputer useable medium according to the claimed invention.

[0020] U.S. Pat. No. 6,213,391 B1, issued Apr. 10, 2001 to William H.Lewis, describes a system for identifying an individual by eithergenerating an identification profile based on a distinctive biometriccharacteristic possessed by that person (e.g. voice analysis, fingerprint, facial scan, DeoxyriboNucleic Acid (DNA), etc.), or by verifyingsome digital “signature” representation assigned to that person. Thebiometric information or digital signature may then be used in a varietyof functions to enhance both the security and convenience of conductingelectronic transactions. The system may provide an algorithm forcreating a personal identification number (PIN) for use as a preliminaryor secondary identification steps, and/or an algorithm for generatingunique tone codes for use in personal identification via telephone ormodem. Further, security of online transactions may be greatly improvedby placing access key information in a medium outside the computer hostor client. The system further provides a device that facilitates auser's ability to change codes or methods of generating codes instantly,without having to contact their bank, credit card company, etc. TheLewis patent does not suggest a UPPD method, system, and/or computeruseable medium according to the claimed invention.

[0021] World Intellectual Property Organization (WIPO) PatentApplication Publication No. WO 97/055383, published Feb. 13, 1997,describes a method for checking and processing bank checks, wherein asecret code is computed, in the form of a CMC7 code thereof, and from anaccount number read off a check submitted for payment, by a dedicatedchip in a check processing device held by a payee, then compared with asecret code input into the device by the check issuer to determinewhether he or she is the rightful account holder. The WIPO '267application does not suggest a UPPD method, system, and/or computeruseable medium according to the claimed invention.

[0022] WIPO Patent Application Publication No. WO 97/36267, publishedOct. 2, 1997, outlines the use of an automated positive checkauthorization system that includes an input device for receiving a checkamount and checking account information pre-printed on a check drawingon a checking account presented in a transaction at the time of checkpresentment. The checking account information and check amount areelectronically transmitted to a check verifier, which receives the checkamount and checking account information from the input device andsearches a checking account database for a current balance in thechecking account. The WIPO '267 application does not suggest a UPPDmethod, system, and/or computer useable medium according to the claimedinvention.

[0023]THE STATE OF UTAH UNIFORM ACCOUNTING MANUAL, revised on Apr. 1,1997, describes how unclaimed tangible or “custodial property” is to behandled in Utah. THE STATE OF UTAH UNIFORM ACCOUNTING MANUAL does notsuggest a UPPD method, system, and/or computer useable medium accordingto the claimed invention.

[0024] U.S. Public Law 108-100, 117 STAT. 1177, entitled the “Check 21Act” (CHECK 21) was signed into law in the U.S. on Oct. 28, 2003,becomes effective on Oct. 28, 2004 (see U.S. Public Law 108-100, 117STAT. 1177), and is incorporated herein by reference. CHECK 21 fostersinnovation in the payments system and enhances its efficiency byreducing some of the legal impediments to check truncation. The lawfacilitates check truncation by a negotiable instrument called a“substitute check”, which permits banks to truncate original checks, toprocess check information electronically, and to deliver substitutechecks to banks that want to continue receiving paper checks. A“substitute check” is the legal equivalent of the original check andincludes all the information contained on the original check. The CHECK21 law does not require banks to accept checks in electronic form nordoes it require banks to use the new authority granted by the act tocreate substitute checks. The CHECK 21 law does not suggest a UPPDmethod, system, and/or computer useable medium according to the claimedinvention.

[0025] None of the above inventions and patents, taken either singly orin combination, is seen to describe the instant invention as claimed.

SUMMARY OF THE INVENTION

[0026] The present invention is a Universal Positive Pay Database (UPPD)method, system, and/or computer useable medium to reduce financialtransaction fraud. A UPPD database is configured to store thereontransaction records associated with financial transactions associatedwith customers of the UPPD database. Each transaction record isconfigured to include parameters associated with a particular financialtransaction. A particular financial transaction is initiated between apayer and a payee by providing parameters associated with the particularfinancial transaction to the UPPD database.

[0027] An Issue File is also provided to the UPPD database. The IssueFile includes parameters associated with the particular financialtransaction, and the particular financial transaction is associated witha drawee bank. A correspondence determination is made between theparameters associated with the particular financial transaction from theIssue File and the parameters associated with the particular financialtransaction provided to the UPPD database to initiate the particularfinancial transaction at every point along a financial transactionclearing process. The customer, payer, payee, payee bank, drawee bank,and banking institutions intermediate the payee bank and the drawee bankare able to access the correspondence determination at every point alonga financial transaction clearing process.

[0028] Accordingly, it is a principal aspect of the invention to providea UPPD method, system, and/or computer useable medium that reducesfinancial transaction fraud and maintains financial transaction paymentcontrol.

[0029] It is another aspect of the invention to provide a UPPD method,system, and/or computer useable medium that can interchangeably be usedby customers, financial institutions, commercial retail entities, theFederal Reserve, check verification services, insurance companies,pharmaceutical companies, and other entities.

[0030] It is a further aspect of the invention to provide a UPPD method,system, and/or computer useable medium that also provides a positive ornegative financial transaction history rating on a customer.

[0031] Still another aspect of the invention to provide a UPPD method,system, and/or computer useable medium configured to receive input datafrom a wide variety of technology.

[0032] Yet another aspect of the invention provide a UPPD method,system, and/or computer useable medium to perform a point of sale, pointof presentment, and point of encashment financial transactionauthorization.

[0033] It is another aspect of the invention to provide a UPPD method,system, and/or computer useable medium configured for uuse with anytransaction instrument.

[0034] It is a further aspect of the invention to provide a UPPD method,system, and/or computer useable medium configured for a paper checkconversion to an electronic check or an electronic check conversion to apaper check on an MICR laser printer utilizing the associatedtransaction record for the UPPD system.

[0035] Still another aspect of the invention to provide a UPPD method,system, and/or computer useable medium configured for use with securitydetectable inks, tamper-proof foils and threads, as well as hologramsapplied to a financial instrument to provide additional security againstfraud.

[0036] Yet another aspect of the invention to provide a UPPD method,system, and/or computer useable medium configured for use with cellwallets, palm wallets, e-wallets, cam wallets, and other wirelessdevices.

[0037] It is a further aspect of the invention to provide a UPPD method,system, and/or computer useable medium configured for use with plasticcard financial instruments such as credit cards, debit cards, storedvalue cards, payroll cards, cash cards, smartcards, etc.

[0038] It is another aspect of the invention to provide a UPPD method,system, and/or computer useable medium to provide a, service for billpresentment, bill payment, accounts payable, and payroll.

[0039] Still another aspect of the invention to provide a UPPD method,system, and/or computer useable medium configured to utilize atransaction instrument with a micro computer chip embedded within thesurface of the transaction instrument, to contain digitized signatures,security, and Global Positioning System (GPS) data and transactionrecord(s).

[0040] Yet another aspect of the invention to provide a UPPD method,system, and/or computer useable medium to reduce the amount of paper andplastic involved when conducting banking transactions.

[0041] It is a further aspect of the invention to provide a UPPD method,system, and/or computer useable medium to implement a positive match ofdata exchange for insurance policies, medical information, andpharmaceutical information.

[0042] It is another aspect of the invention to provide UPPD method,system, and/or computer useable medium configured to enable a financialinstitution merchant and all parties to debit stall or stall debit onany and all debit card and check debit financial transactions.

[0043] It is an aspect of the invention to provide improved elements andarrangements thereof in a UPPD method, system, and/or computer useablemedium for the purposes described which is inexpensive, dependable andfully effective in accomplishing its intended purposes.

[0044] These and other aspects of the present invention will becomereadily apparent upon further review of the following specification anddrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

[0045]FIG. 1 a network diagram example of a UPPD system according to thepresent invention.

[0046]FIG. 2 is network diagram example of a UPPD system with outsidefinancial services provided according to the present invention.

[0047]FIG. 3 is a network diagram example of a UPPD system with checkverification provided according to the present invention.

[0048]FIG. 4 is a network diagram example of a UPPD system with checkverification and outside financial services provided according to thepresent invention.

[0049]FIGS. 5A and 5B are a flow diagram of a UPPD method for checkingaccounts according to the present invention.

[0050]FIG. 6 is a flow diagram illustrating bank specific Positive Payaccording to the prior art.

[0051]FIG. 7 is a flow diagram showing no connectivity with bankspecific Positive Pay according to the prior art.

[0052]FIG. 8 is a diagram according to the prior art showing why checkfraud works today.

[0053]FIG. 9 is a flow diagram indicating how a UPPD system processes abad check according to the present invention.

[0054]FIG. 10 is a diagram indicating how stalled debt or debit stall isused by a UPPD according to the present invention.

[0055]FIG. 11 is a diagram indicating how Safety Check Deposit softwareis used by a UPPD system according to the present invention.

[0056]FIG. 12 is a diagram indicating how TrackBack software is used bya UPPD system according to the present invention.

[0057]FIG. 13 is a diagram indicating how a credit history compilationis used by a UPPD system.

[0058]FIG. 14 is an overview of a diagram showing differentcommunications methods used by a UPPD system according to the 5 presentinvention.

[0059]FIGS. 15A and 15B are flow charts of bank specific Positive Payprocesses that can be used with UPPD processes according to the presentinvention.

[0060]FIGS. 15C, 15D, 15E, 15F, 15G, 15H, 15I, 15J, and 15K, are flowcharts of UPPD processes according to the present invention.

[0061]FIG. 16 is a functional diagram of a UPPD system according to thepresent invention.

[0062]FIG. 17 is a functional diagram of a UPPD system according to thepresent invention.

[0063]FIG. 18 is a functional diagram of a UPPD system according to thepresent invention.

[0064]FIG. 18 is a functional diagram of a UPPD system according to thepresent invention.

[0065]FIG. 19 is a functional diagram of a UPPD process according to thepresent invention.

[0066]FIG. 20 is a functional diagram of a UPPD process according to thepresent invention.

[0067]FIGS. 21A and 21B are flow charts of UPPD processes according tothe present invention.

[0068]FIGS. 22A, 22B, 22C, and 22D are flow charts of UPPD processesaccording to the present invention.

[0069]FIGS. 23A, 23B, 23C, 23D, and 23E are flow charts of UPPDprocesses according to the present invention.

[0070]FIGS. 24A, 24B, 24C, 24D, 24E, and 24F are functional diagrams ofUPPD processes according to the present invention.

[0071]FIG. 25 is a functional diagram of a UPPD process according to thepresent invention.

[0072]FIGS. 26A, 26B, 26C, 26D, and 26E are functional diagrams of UPPDprocesses according to the present invention.

[0073]FIG. 27 is a functional diagram of a UPPD system according to thepresent invention.

[0074]FIGS. 28A and 28B are functional diagrams of UPPD processesaccording to the present invention.

[0075]FIG. 29 is a functional diagram of a point of sale transactionutilizing a UPPD system according to the present invention.

[0076]FIG. 30 is a functional diagram of a UPPD system according to thepresent invention.

[0077]FIG. 31 is a functional diagram of a UPPD system according to thepresent invention.

[0078]FIGS. 32A, 32B, 32C, 32D, 32E, and 32F, are functional diagrams ofa UPPD processes according to the present invention.

[0079]FIG. 33 is a functional diagram of the use of a PIN with a UPPDsystem according to the present invention.

[0080]FIGS. 34A and 34B are functional diagrams of UPPD processesaccording to the present invention.

[0081]FIGS. 35A and 35B are diagrams of security measure for use with aUPPD system according to the present invention.

[0082]FIG. 36 is a functional diagram of biometric security measures foruse with a UPPD system according to the present invention.

[0083]FIG. 37 is a functional diagram of a UPPD system according to thepresent invention.

[0084] Similar reference characters denote corresponding featuresconsistently throughout the attached drawings.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0085] This present invention is a UPPD method, system, and/or computeruseable medium. The invention disclosed herein is, of course,susceptible of embodiment in many different forms. Shown in the drawingsand described herein below in detail are preferred embodiments of theinvention. It is to be understood, however, that the present disclosureis an exemplification of the principles of the invention and does notlimit the invention to the illustrated embodiments.

[0086] Referring to the drawings, a UPPD system 10 for maintainingfinancial transaction control and preventing financial transaction fraudwith connectivity between users is shown in FIG. 1. The UPPD system 10includes a UPPD database 20 and provides match, authentication,authorization, settlement, and clearing processes for financialtransactions initiated by customers of the UPPD database 20. UPPDcustomers, as used herein, are individuals, companies, businesses,organizations, government agencies, etc., who have access to the UPPDdatabase 20.

[0087] The UPPD system 10 provides connectivity of informationcommunication and verification by matching an issued item and/or filesto parameters associated with a particular financial transaction, aspresented at point of presentment (POP), point of encashment (POE),point of sale (POS), etc, the ability to ascertain whether a financialtransaction is authentic, or whether it appears to be authentic. Anyindication that a financial transaction has been altered, accountclosed, or insufficient funds exist, the financial transaction can beblocked immediately or a debit stalled preventing banks, bankscustomers, merchants, etc., from being held liable for worthlesstransaction instruments (e.g., checks, debit check(s), debit cardtransaction(s), debit/credit ticket(s)/slip(s), sales ticket(s)/receipt(s), etc.).

[0088] The UPPD system 10 is configured to enable multiple banks,consumers, and merchants a truly universal protection and securitysystem. The UPPD system 10 provides the most cost effective way tovirtually eliminate fraud, provide unprecedented security, anddrastically reduce the cost of clearing financial transactions includingpaper and electronic official items, e.g., checks, debit cards, debitchecks, money orders, gift certificates, cards and other officialdocuments. The UPPD system 10 provides connectivity from banks to banksand merchants to banks instantly. The UPPD system 10 provides a sourcefor connectivity, centralized and/or personalized data retrieval, matchauthentication, confirmation of sufficient funds, protection fromidentity theft, and other applications.

[0089] While the UPPD database 20 is illustrated as a single database,the UPPD database 20 may be configured as a plurality of separate ordisparate databases interconnected through a network system via anynumber of switches, such as a local area network (LAN), a wide areanetwork (WAN), an intranet, an extranet, the Internet, etc.

[0090] The UPPD system 10 includes a computer useable medium and acomputer device with a processor. As used herein, a “computer useablemedium” includes a non-volatile medium (e.g., a magnetic medium, harddisk, a solid state disk, optical storage, Flash memory, electricallyeraseable programmable read only memory (EEPROM), parameter randomaccess memory (PRAM), etc.), a volatile medium (e.g., dynamic RAM(DRAM), Direct Rambus® DRAM (DRDRAM), double-data rate DRAM (DDR DRAM),double-data rate synchronous DRAM (DDR SDRAM), enhanced DRAM (EDRAM),enhanced synchronous DRAM (ESDRAM), extended data out (EDO) DRAM, burstEDO (BEDO) DRAM, fast page mode DRAM (FPM DRAM), Rambus DRAM (RDRAM),SyncLink® DRAM (SLDRAM), synchronous RAM (SRAM), synchronous DRAM(SDRAM), synchronous graphic RAM (SGRAM), video RAM (VRAM), window RAM(WRAM), etc.), or an installation medium (e.g., a CD-ROM, a floppy disk,a removable disk, etc.), on which computer programs are stored forloading into the computer device.

[0091] The computer device may be any type of computer device with aprocessor, such as a desktop computer, a laptop computer, a palmtopcomputer, a network computer, a personal digital assistant (PDA), anembedded device, a smart phone, or any other suitable computer device.For example, the UPPD system 10 may include one or more server computerswith a processor, an area of main memory for executing program codeunder the direction of the processor, a storage device for storing dataand program code and a bus connecting the processor, area of main memoryand the storage device. The UPPD database 20 may be stored on thestorage device, as well as a data communications device, such as amodem, connected to the bus for wirelessly and/or non-wirelesslyconnecting the computer to a local area network (LAN), a wide areanetwork (WAN), an intranet, an extranet, the Internet, etc. UPPDsoftware is stored in the computer useable medium and executes under thedirection of the processor.

[0092] The UPPD software causes the processor to provide and configurethe UPPD database 20 to store thereon transaction records associatedwith financial transactions corresponding to customers of the UPPDdatabase 20. Each transaction record is configured to includealphanumeric data pertaining to parameters associated with a particularfinancial transaction. Such parameters for one financial transactioninclude alphanumeric data grouped into fields associated with items thatmay include a payer name, a payee name, payer and/or payee personalspecifics, a transaction instrument, an account number, a PIN, a digitalsignature, etc. Biometric information may also be provided asparameters, such as DNA, facial structure, iris, retina, finger print,voice, signature, etc. For example, parameters associated with apaper/electronic check may include a check number, an issue date, apayee, a routing number, an account number, etc.

[0093] A transaction instrument may be configured to operate with theUPPD system 10. A “transaction instrument”, as used herein, means apaper and/or electronic check (paper/electronic check), an image of apaper/electronic check, a debit card, a debit check, a an intranet, anextranet, the Internet, etc. UPPD software is stored in the computeruseable medium and executes under the direction of the processor.

[0094] The UPPD software causes the processor to provide and configurethe UPPD database 20 to store thereon transaction records associatedwith financial transactions initiated by customers of the UPPD database20. Each transaction record is configured to include alphanumeric datapertaining to parameters associated with a particular financialtransaction. Such parameters for one financial transaction includealphanumeric data grouped into fields associated with items that mayinclude a payer name, a payee name, payer and/or payee personalspecifics, a transaction instrument, an account number, a PIN, a digitalsignature, etc. Biometric information may also be provided asparameters, such as DNA, facial structure, iris, retina, finger print,voice, signature, etc. For example, parameters associated with apaper/electronic check may include a check number, an issue date, apayee, a routing number, an account number, etc.

[0095] A transaction instrument may be configured to operate with theUPPD system 10. A “transaction instrument”, as used herein, means apaper and/or electronic check (paper/electronic check), an image of apaper/electronic check, a debit card, a debit check, a smartcard, acredit card, a point of sale (POS) terminal, a point of escheat (POE)terminal, a point of presentment (POP) terminal, a bank point of data(POD) terminal, an automated teller machine (ATM), a personal digitalassistant (PDA), a telephone, a cellular telephone, a cordlesstelephone, a pager, a watch, a television, a radio, a compact disc (CD)player, a tape player, a copier, a facsimile machine, or any otherelectronic device.

[0096] Account number parameters for transaction records of financialtransactions for the UPPD system 10 may be associated with a checkingaccount number, a savings account number, a credit card account number,a money market account number, a liability account number, abills/payable account number, an asset account number, aninvoice/receivables account number, a cash account number, an insurancepolicy account number, an account number for a will, an account numberfor a trust, or a number for any other financial account.

[0097] The UPPD system 10 is configured to operably utilize an IssueFile substantially the same as Positive Pay files used withbank-specific Positive Pay services previously described, may havelimited connectivity and/or may be universally available throughconnectivity via the UPPD system 10 between any party(s), such asbank(s), institution(s), company(s), third party(s), vendor(s),merchant(s), consumer(s), etc. An Issue File, as used herein, isconfigured for use with the UPPD system 10 and includes one or moretransaction records associated with certain financial transactions,where the financial transactions are associated with a drawee bank. Thetransaction record(s) in an Issue File each include alphanumeric datapertaining to parameters associated with a certain financialtransaction. The Issue File is established at the time the particularfinancial transaction is initiated between a payer and a payee by acustomer of the UPPD database 20 by providing parameters associated withthe particular financial transaction to the UPPD database 20.

[0098] For a particular financial transaction, a comparison orcorrespondence determination is made between the parameters associatedwith the particular financial transaction from the Issue File and theparameters associated with the particular financial transaction providedto the UPPD database 20 when the particular financial transaction wasinitiated. Such a correspondence determination is made at periodicintervals (e.g., fractions of a second), and at every point along thefinancial transaction clearing process. The correspondence determinationis also available to the customer, payer, payee, payee bank, draweebank, and banking institutions intermediate the payee bank and thedrawee bank at any time, e.g., throughout the financial transactionclearing process.

[0099] The customer, payer, payee, payee bank, drawee bank, and bankinginstitutions intermediate the payee bank and the drawee bank can thendetermine whether the correspondence determination between the financialparameters from the Issue File and the financial transaction parametersprovided to the UPPD database 20 when the particular financialtransaction was initiated does not match and/or does not coincide belowa minimum threshold, thereby enhancing security by facilitating anaccurate determination as to whether the tampering or altering hasoccurred to the transaction record at every point along the financialtransaction clearing process.

[0100] The UPPD software may also search and capture transaction recordsfor compliance with escheat laws, automatically poll transactionrecords, transmit a partial or full reconciliation of the transactionrecords, locate lost, stolen, misplaced items, and items not presentedand that remain outstanding, and archive and store transaction records,matching data, verification data, and authentication data for apredetermined period of time.

[0101] Currently a payments system, defined as the combinedtransaction-based processes, procedures, rules, and regulations employedby the financial institutions and, in the United States, the FederalReserve System, is employed for the express purpose of moving fundsamong financial institutions and individuals in support of commerce. Anelectronification payments system environment has been evolving overtime and has been influenced by a need to reduce current item processingcosts, reduction in the cost of float by increasing the speed of thepayments system process, the growth of point-purchase conversionvolumes, the emergence of new technologies, particularly the use on theInternet, customer acceptance of multiple delivery channels, maturationof image technology as a viable processing platform, concerns aboutcybersecurity, and, in the United States, the Check Truncation Act(CTA).

[0102] As used herein, the ‘electronification’ of checks refers to theprocess of converting paper checks into some form of an electronicfinancial transaction, such as an image-based transaction or imageexchange, Automated Clearing House (ACH) debit or electronic checkpresentation (ECH) debit. An ‘electronic check’ refers to one of severaltypes of electronic financial transactions including an ACH-basedelectronic check, an electronic network electronic check, and Internetor telephone initiated payments. The ACH-based electronic check beginsas a paper check and is converted into, or truncated to, an ACH debitentry. The paper check is not processed. An Internet or telephoneinitiated payment is a financial transaction initiated over the Internetor by telephone, with the debit carried out electronically, usually byan ACH debit. Some users categorize payments initiated via the Internetor telephone, but that are effected by paper drafts, as electronicchecks, even though the debit is paper-based. Electronic check may alsorefer to any attempt to initiate payment through a personal computer,computer system, or the Internet.

[0103] In the United States, the CTA facilitates check truncation byeliminating some of the legal impediments to the use of electronics incheck processing, in order to allow all financial institutions toparticipate in an environment in which the truncation of checks canoccur at any point in the payment process. In addition, the CTA seeks toensure that financial institutions which have not, or may not, invest inimaging do not have to make a large financial investment to develop thesystem infrastructure needed to support check truncation.

[0104] Check imaging is a process whereby check images are captured viaimage camera and stored in a digitized format. This process may beaccomplished on medium to high speed processing equipment, such asequipment manufactured by IBM, NCR, Unisys, Banc Tec, etc., is normallydone in financial institution back offices for the capture, sorting, anddistribution of checks and other MICR encded documents. The benefits ofimaging over microfilm are quality, transportability, availability, andtimeliness. The capturing financial institution can keep an archivalcopy of every document processed. A copy of a customer's check can beincluded in the statement mailing. Checks drawn on other financialinstitutions can be exchanged with those financial institutions in lieuof physical documents. Check imaging reduces the risk inherent in thepayments system by considerably reducing the time during which checksare presented and paid.

[0105] An ACH debit entry, electronic funds transfer (EFT), and/or othermoney transfer processes initiated by an originator, such as a merchant,is known as a point of presentment (POP) financial transaction. A POPfinancial transaction is initiated as a single entry authorization, anduses a check as a source document. The MICR line information is capturedand provided by the originating merchant to the paying bank at the POPto effect a transfer of funds from a consumer account of the payingbank. This type of financial transaction may only be used fornon-recurring, in person (i.e., at the POP) entries for which there areno standing authorizations with the originating merchant for theorigination of the ACH entries to the consumer's account.

[0106] A POP conversion is a process in which checks are converted intoelectronic debits and processed using the ACH network. POP conversionmay be effected when the merchant keeps the original check or when theconsumer receives the check after the conversion process. When theconsumer receives the check after the conversion process, the consumersubmits an original check and signs an authorization document, a copy ofwhich is returned to him/her when the financial transaction iscompleted. The merchant scans the written check through a special readerthat captures the account, check, and routing number, as well as thepurchase amount.

[0107] The check data are then sent to an agent for authorization of theamount. Once authorized, the amount is converted to an electronicfinancial transaction and sent through the ACH network for payment. Theconsumer signs the separate authorization document and receives theoriginal check back, which has been stamped “void” by the merchant. Withthis type of financial transaction, the paying bank does not have theopportunity to review the check and authenticate the customer throughsignature verification.

[0108] Returning the paper check to the consumer after the ACH financialtransaction is generated minimizes the risk that a perpetrator willredirect the funds to an account other than the retailer's. Processcontrols manage the debit and credit flow from origination toconclusion. The credits to the merchant's account must match the debitsthat are originated. This proof mechanism protects both the merchant andconsumer from dishonest employees, interlopers between the sending andreceiving of the transactions, and deceitful individuals who try toalter the financial transaction amount.

[0109] With telephone financial transactions, the originating merchantor service provider can initiate a single entry ACH debit pursuant to anoral authorization obtained over the telephone to transfer funds from aconsumer account. This type of entry may only be used as a single entry,for which there is not standing authorization for the origination of theACH entries to the consumer's account. A telephone entry may only beused when there is an existing relationship between the originatingmerchant or service provider and consumer or, when there is not anexisting relationship between the originating merchant or serviceprovider and the receiver, when the consumer initiates the telephonecall.

[0110] An originating merchant or service provider may initiate an ACHdebit entry pursuant to an authorization obtained from the paying bank,via the Internet, to transfer funds from a consumer account at thepaying bank.

[0111] Positive Pay services have been available from individual banksin recent years. It is a service that a bank sells for a fee to itsaccount holders whereby only checks that are pre-approved are acceptedat the bank. The check generating customer generally uploads a file oftransaction records associated with financial transactions daily to thebank of all checks written that day. When checks drawn on the customers'accounts are presented to the bank, their database is queried. If thetransaction record for a check has been tampered with or if transactionrecord includes an unauthorized check number, the transaction recordwill be rejected.

[0112] Positive Pay services are recognized as an effective service tofight against check fraud. Rejected checks cause considerable effort tobe expended throughout the highly regulated banking system. A typicalcheck passes from point of sale to depositing bank to the FederalReserve or clearing bank and back to the account holder's bank andaccount. At each step, the check is read, sorted and recorded, forming atrail that can be easily traced.

[0113] The existing Positive Pay services are bank specific. In otherwords, only a bank's own account holders can utilize it and takeadvantage of it. The UPPD system 10 can be used by both account holdermembers and non-members. The UPPD system 10 may be accessed bycustomers, payers, payees, payee banks, drawee banks, and bankinginstitutions intermediate the payee banks and the drawee banks forissuing and tracking transaction records associated with financialtransactions at every point along the financial transaction clearingprocess (e.g. the POP, POS, POE, bank POD, the truncation bank, etc.).

[0114] The UPPD system 10 allows all banks to participate in a processthat can catch fraudulent transaction records associated with afinancial transaction earlier in the financial transaction redemptioncycle. For example, for paper/electronic checks, at each step in thecheck clearing process, the UPPD database 20 of the UPPD system 10 canbe queried to determine if the owner of the account has indeedauthorized the instrument for the amount written and signature on thefinancial instrument. A few banks have already developed their owninternal Positive Pay software, however, this software is only bankspecific.

[0115] The Check 21 Act (CHECK 21) was signed into law in the UnitedStates on Oct. 28, 2003, and becomes effective on Oct. 28, 2004 (seeU.S. Public Law 108-100 117 STAT. 1177). CHECK 21 fosters innovation inthe payments system and enhances its efficiency by reducing some of thelegal impediments to check truncation. The law facilitates checktruncation by a negotiable instrument called a “substitute check”, whichpermits banks to truncate original checks, to process check informationelectronically, and to deliver substitute checks to banks that want tocontinue receiving paper checks. A “substitute check” is the legalequivalent of the original check and includes all the informationcontained on the original check. The law does not require banks toaccept checks in electronic form nor does it require banks to use thenew authority granted by the act to create substitute checks.

[0116] As used herein, the definitions for the following terms apply.The term “bank” means any person, company, and/or business that isengaged in the business of banking and includes (a) any depositoryinstitution as defined in section 19(b)(1)(A) of the U.S. FederalReserve Act, (b) any Federal reserve bank, (c) any U.S. Federal homeloan bank, or (d) to the extent it acts as a payer (i) the Treasury ofthe U.S., (ii) the U.S. Postal Service, (iii), a State government, or(iv) a unit of general local government as defined in section 602(24) ofthe Expedited Funds Availability Act.

[0117] The terms “magnetic ink character recognition line” and “MICRline” means the numbers, which may include the bank routing number,account number, check number, check amount, and other information, thatare printed near the bottom of a check in magnetic ink in accordancewith generally applicable industry standards.

[0118] The term “substitute check” means a paper reproduction of theoriginal check that (a) contains an image of the front and back of theoriginal check, (b) bears a MICR line containing all the informationappearing on the MICR line of the original check, except as providedunder generally applicable industry standards for substitute checks tofacilitate the processing of substitute checks, (c) conforms, in paperstock, dimension, and otherwise, with generally applicable industrystandards for substitute checks, and (d) is suitable for automatedprocessing in the same manner as the original check.

[0119] The term “truncate” means to remove an original paper check fromthe check collection or return process and send to a recipient, in lieuof such original paper check, a substitute check or, by agreement,information relating to the original check (including data taken fromthe MICR line of the original check or an electronic image of theoriginal check), whether with or without subsequent delivery of theoriginal paper check.

[0120] The UPPD system 10 is configured to be compatible and/or fullyoperational with CHECK 21 and can utilize transaction records includinga check number, a check amount, an account number, a routing number, acheck date, signatures, digitized signatures and matrixes and a checkpayee. The identity of the drawee-payer bank may be derived from therouting number. The transaction records are not limited to written checkinformation and can include other financial instruments such aselectronic checks, cash cards, credit cards, traveler's checks, moneyorders, gift certificates and cashier 's checks. Although the customer(depositor) 30 may primarily use the UPPD system 10 for written checks,because of the similarity of financial records between these transactioninstruments, the UPPD system 10 can easily accommodate the transactionrecords for other transaction instruments as well.

[0121] For a customer 30, the UPPD system 10 has the flexibility toutilize several means for inputting current transaction recordparameters. These include computerized devices such as personalcomputers, portable laptops and palmtops, as well as mainframe computersand servers, all of which can be tied into the Internet and land baseddata bank.

[0122] The customer 30 can simply log onto the uniform resource locatorof a Web site of the UPPD database 20 and can then fill out a customizedWeb form to upload current transaction record parameters to the Web siteby hypertext transfer protocol (HTTP) or by e-mail. These types of formsare well-known to those schooled in the related art, as is the use ofthe Internet protocols to transmit forms information on the Internet.

[0123] Alternatively, the customer 30 can initially set up an accountnumber and enter an activation code or a preset encrypted code so thattransaction record parameters can be transmitted to the UPPD database 20and Web site by keying in the information by touchtone telephone, sothat conventional decoder machines link the information to the UPPDdatabase 20. A wireless telephony device can be used in the same manner,with either audible or subaudible tones corresponding to the keyspressed being modulated onto the radio frequency carrier, and then beingdemodulated on reception and linked to the UPPD database 20. Anotheralternative uses voice recognition software to encode informationreceived by telephone to enter transaction record parameters to the UPPDdatabase 20. Use of these telephony devices, voice recognition software,and systems are well-known to those skilled in the related art and arenot a point of novelty with this invention.

[0124] Additionally, technology such as optical character recognitiondevices and magnetic ink character recognition devices can also be usedas a means for inputting current transaction record parameters from thecustomer 30. The magnetic ink character recognition devices and digitalreaders can also be used by commercial check generating entities at thepoint of presentment and point of encashment to read transaction recordparameters off of a written check, allowing matching, authenticated,authorization, settlement, and clearing.

[0125] Transaction record parameters may be provided to the UPPDdatabase 20 wirelessly and/or non-wirelessly. For example, thetransaction record parameters by be transmitted by modem or wirelesslyusing direct dial software without going through a computer network, byfacsimile transmission, by mail, etc. Inputting transaction recordparameters in this manner, however, are typically not as convenient andpopular as using the Internet and existing ACHs 70, EFTs, wires, creditcards, or other financial communications networks.

[0126] A participating commercial entity, such as a commercial retailstore 50, member bank 60, clearing house 70.and Federal Reserve 80 maymatch and compare the information from the check with the transactionrecord parameters in the UPPD system 10. Hence, a collecting bankintermediate the presenting bank and the payer bank may validate thecheck by comparing the transaction record parameters recorded in theUPPD database 20 against the entries on the check to verify that thecheck has not been altered or tampered with. This may be done by loggingonto a web site associated with the UPPD system 10 over the Internet andsimply accessing the desired transaction record in the UPPD database 20.

[0127] If the check has been altered in any way, the participatingcommercial entity is immediately notified not to accept the alteredcheck. Likewise, a customer 30 can instantly check the UPPD system 10for either a perfect match or a rejection of the check. An ACH 70 orFederal Reserve Clearing Division 80 can also instantly check the UPPDsystem 10 or reject an altered check based on the current transactionrecord parameters.

[0128] The UPPD software may be configured to perform a partial or fullreal-time reconciliation of the transaction records for a customer 30 ona daily or weekly basis, depending on the needs of the customer 30. Thereconciliation for the customer 30 may be requested and transferred viathe Internet from the UPPD system 10.

[0129] As is shown in FIG. 2, the customer 30 can also upload thetransaction record(s) to be reconciled to the customer's bank 40. Thecustomer bank 40 then passes the current transaction record(s) onto theUPPD system 10, where the current transaction record(s) are reconciledand returned to the customer 30 (via the Internet).

[0130] A polling option is also available where the customer 30 mayupload their current transaction record(s) directly to their bank 40.The UPPD system 10 may also dial up the bank 40 and poll the currenttransaction record(s) for download into the UPPD system 10. This pollingis automatically done with software that is part of the UPPD system 10.This is a pass through on the part of the customer bank 40, allowing thecustomer bank 40 to charge a fee for this service.

[0131] Similarly, at the end of each day, the UPPD system 10 can dial upthe location of the customer 30 and poll the customer 30 for the currenttransaction record(s). The polling may occur either by an automatic dialup from the customer 30 to the UPPD system 10 or by the UPPD system 10automatically dialing up the customer 30 and downloading the currenttransaction record(s). Typically, one type of polling is chosen overanother, depending on the preference of the customer 30. Both types ofpolling utilize software that is incorporated into the UPPD system 10and can simply sweep the current check register files and download theminto the UPPD database 20.

[0132] The UPPD software may also be configured to search for andcapture escheated transaction record(s). Escheated transaction recordparameters are information on checks that have not been cashed and are“unclaimed”. Configured in this manner, the UPPD software continuouslysearches for outstanding escheated transaction record parameters. TheUPPD software can track each state's individual escheatment laws andapply those laws which pertain to the customer 30.

[0133] Financial instruments that are never presented for encashment ornever redeemed are required to be reported as abandoned property in manystates. The face value of those financial instruments must be turnedover to the state with a record of the rightful owner on a periodicbasis. The data in the UPPD system 10 can be used to generate thesereports.

[0134] A microcomputer chip can also be embedded within the surface of afinancial instrument, such as a paper check, that could provide currenttransaction record parameters, additional security, digitizedinformation, signatures, PINs, and GPS tracking data. This providesanother fraud deterrent security feature along with the necessarytransaction record information used in the UPPD system 10. Thismicrocomputer chip, if altered or tampered with, can immediatelyindicate that a falsification and/or tampering has occurred with atransaction instrument.

[0135] Security detectable inks, tamper-proof foils, electron foils andthreads, as well as holograms can also be incorporated into a financialinstrument used in the UPPD system 10 to provide additional securityagainst fraud.

[0136] Newly developed wireless devices known as the cell wallet, thepalm wallet, the e-wallet, NavCheck, and the cam wallet can also be usedas part of this UPPD system 10. Although existing cell phones and palmdevices are not a novelty, the cell wallet, the palm wallet, thee-wallet, and the cam wallet are novel in being used in conjunction withthe UPPD system 10.

[0137] These devices can be placed in a given vehicle and are known asNavCheck devices. These NavCheck devices are unrelated to NAVchek creditline checks of the Navy Federal Credit Union. For the purposes of makingevery component user friendly, the NavCheck device can be activated oncethe vehicle is started. Either a voice or digital message can appear onthe screen of the NavCheck device, asking the vehicle owner to entercurrent written transaction record parameters into the device, whichcould include the check amount, check number, and to who the check wasmade out.

[0138] The customer account number and date could be preset in thedevice for transmission of the data to the UPPD system 10, along withproviding the necessary data for the transaction record(s) of thecustomer 30.

[0139] The NavCheck device may have the same capabilities as the cellwallet, palm wallet, e-wallet and cam wallet. A simple plug-inattachment to these devices would allow the download of data anddigitized pictures to the UPPD system 10. With a microcomputer chip, alost, stolen or forged check can also be located through use of GPSutilizing the NavCheck device to locate the paper check or card. Thesedevices also allow ease for the customer 30 to use electronic checks andtransmit the check data to the UPPD system 10.

[0140] These devices may be configured with a refillable ball point penand an optical character reader to record all of the current transactionrecord parameters of the check written. These devices may also beconfigured to operate via voice recognition. As the customer 30 writesthe check, they simply state the current transaction record parameters.The device may already have the account number of the customer 30 andthe date preset, and the transaction record parameters may be enteredinto the device and a signal sent daily downloading the wirelesstransaction record parameters of these wallet devices to the UPPD system10. These devices may also be configured to have optical characterrecognition scanning to enable the customer 30 to scan the check thatwas just written, and/or digitize the check.

[0141] If a customer 30 elects not to carry a paper checkbook or singlepaper check, they may utilize the option of converting to an electroniccheck through these devices. The customer 30 may also elect to key inthe transaction record parameters by punching in the correct data on akeypad. All methods on these devices enable the customer 30 to providethe necessary transaction record parameters to the UPPD system 10.

[0142] One of the more important features of the UPPD system 10 is checkverification services, which are outlined in FIGS. 3 and 4. The checkverification services feature allows the commercial retail entity 50 toaccess the customer's 30 history of writing checks, giving a negative orpositive rating. This can be done in addition to accessing thepreviously discussed transaction record(s).

[0143] When a given commercial retail entity 50 is presented acustomer's check at the point of sale, the commercial retail entity 50sends the UPPD system 10 a signal which is then sent to the checkverification services provider 90. The check verification servicesprovider 90 then accesses the customer's 30 check history and gives apositive or negative rating based on whether there are any checks thathave not been honored. If there are any dishonored checks writtenpresented by the customer 30, a negative rating may be given. If thereare no dishonored checks, a positive rating may be given.

[0144] Once the rating has been established, a signal is then sent backto the UPPD system 10 and back to the commercial retail entity 50wirelessly and/or non-wirelessly. It is up to the commercial retailentity 50, what to do with this rating. In other words, it is up to thecommercial retail entity's 50 discretion whether to accept a customer's30 check based on this rating.

[0145] As illustrated in FIGS. 5A and 5B, each participant in the checkclearing process (payer customer 30, payee 100, payee bank 110, FederalReserve 80, clearing bank 70, or payer bank 120), participates in a UPPDmethod 130 used by a payer (customer) 30 for maintaining check paymentcontrol and preventing check fraud. The UPPD method 130 includes aseries of steps in which payer 30 uploads check information to the UPPDsystem 10, payee 100 deposits check in payee bank 110, payee bank 110checks the check against the UPPD database 20 in the UPPD system 10,check is deposited in Federal Reserve 80 or clearing bank 70, whichchecks it against the UPPD database 20, payer bank 120 receives checkand checks it against the UPPD database 20 and reports back to the UPPDsystem 10 that the check has been debited from payer's 30 account.

[0146] The first step of the UPPD method 130 is uploading transactionrecord parameters into the UPPD system 10. As indicated earlier, thisinformation may include a check number, a check amount, an accountnumber, a routing number, a check date, signature and signaturedigitalization and a payee 100. This information is stored in the UPPDdatabase 20 and is compared with the information that is on the physicalcheck as it runs through each step of the check clearing process. Thepayer 30 also physically writes the check and gives it to the payee 100before the transaction record parameters are uploaded into the UPPDsystem 10.

[0147] As touched on earlier, there are numerous ways that transactionrecord parameters can be uploaded into the UPPD system 10. These includea Web form on the Internet, where an account holder goes to a privateWeb page and enters the transaction record parameters. There are alsoclient application software programs that can reside on an accountholder's computer and transmit the transaction record parameters viamodem and a non-network connection to the UPPD system 10. Voiceactivated client software that receives transaction record parametersinput via voice can also be used and is known to those skilled in therelated art.

[0148] Scanner technology attached to a computer that reads a check andtransmits data, as well as bar code readers, can also be used to uploadtransaction record parameters. Wireless and/or non-wireless data entryutilizing manual and/or vocal input can be used to transmit data as wellas 2-way paging devices, including infrared and laser technologies. Evenordinary mail or delivery services can be used to deliver data to thephysical address of the UPPD system 10 (to be entered by hand).

[0149] The next step of the UPPD method 130 involves the payee 100receiving the physical check and depositing the check into his or herbank account at the payee's bank 100. The payee's bank 100 utilizesoptical character recognition, infrared, laser check reader devices ormagnetic ink character recognition technology to scan the check andupload the check register check information to the UPPD database 20(usually via the Internet). This may normally be done automatically withthe polling software previously discussed. The UPPD system 10 receivesnotification when the check clears, as it may for each redundant step ofthe financial transaction clearing process.

[0150] The next step of the UPPD method 130 involves the payee's bank100 checking and verifying the transaction record parameters from thecheck with the transaction record parameters from the UPPD database 20.This is done to detect fraudulent tampering or unauthorized use of thecheck early in the financial transaction clearing process and is anadvantage over some of the current methods outlined in the related art.

[0151] The next step of the UPPD method 130 involves the payee's bank100 depositing the check into a regional Federal Reserve ClearingDivision 80 or clearing house 70. Like the previous step involving thepayee's bank 100, the Federal Reserve 80 or clearing house 70 checks thecheck against the UPPD system 10 for check tampering or fraud again foradded security and redundancy.

[0152] The next step of the UPPD method 130 involves the Federal Reserve80 or ACH 70 sending the check to the payer's bank 120. The check isagain checked and compared with the transaction record parameters in theUPPD database 20 for check tampering and fraud by the payer's bank 120,which approves the check for payment. The check is then debited from theaccount of the payer 30 and the UPPD system 10 is notified, which is thefinal step of the UPPD method 130.

[0153] Each participant in the check clearing process has an opportunityto add to and receive information from the UPPD system 10. Thisinformation can be used for account verification and notification of acheck that was rejected due to unauthorized issue, evidence of tamperingor account owner cancellation. Status of a check as to where it is inthe clearing process is also readily available. A check query notice issent to a payer 30 whenever their records are accessed and a depositacceptance notice is sent to a payee 100 and payer 30 when a check isaccepted.

[0154] It should be noted, as seen on FIGS. 6, 7, and 8 that thePositive Pay exists today in the financial industry. However, it isdefined as bank specific Positive Pay. Bank specific Positive Pay isnothing more than a customer 30 downloading his check register to theirbank 60 daily. Like living on a cul-de-sac, the customers 30 and thebank 60 only have communication with themselves and anyone who is aneighbor customer only banking with that specific bank on that system.If they live on the next block, next city, or another state, they haveno way to communicate. There is no connectivity, as shown in FIGS. 7 and8.

[0155] Another example of use for the UPPD system 10 is that thedeclarations page of an insurance policy can be provided with a seriesof numbers identical or similar to a MICR line across the bottom of acheck. Within this line would be the policy number, issue date, policyamounts and effective dates. All of the information would become similarto a check register and could be downloaded from an insurance company tothe UPPD database 20. The positive match between the file accepted fromthe carrier issuing the policy and that received from the agent keepsthe policy from being altered.

[0156] The UPPD system 10 also allows for complete connectivity,allowing banks 60, commercial retail entities 50 and even customers 30to communicate directly or indirectly through the UPPD database 20 bymatching the positive data sent by the customer 30. The customer 30 canupload his check register of written checks to the bank 60 under bankspecific Positive Pay, but is then restricted from a universalverification for authenticity. As shown in FIG. 9, under the UPPD system10, the customer 30 uploads his check register directly to the UPPDdatabase 20. Any member commercial retail entity 50 or contracted thirdparty verifier 140 can send check data to the UPPD database 20 forverification.

[0157] The signal passes through the match, authentication,authorization, settlement, and clearing system 10 for matching. If thesignal matches the check register data present, the signal is then sentto the customer's bank 40, where it checks for sufficient funds, stoppayments, liens, account status (open or closed), funds available tocover any check (overdraft protection, etc.), and any otherverifications to provide a signal back through the UPPD system 10,enroute to the querying party to either accept, reject or not approvethe check. If there has been a fraud, it is discovered instantly. Ifthere are insufficient funds, the bank may elect to approve or rejectbased on its customer relationship.

[0158] As shown in FIG. 10, the UPPD system 10 may utilize stalled debitor debit stall services 150 provided by the bank 60. Normally, when acheck is presented, based on the bank's 60 customer relationship orcontractual relationship, the bank 60 would be allowed to debit thecustomer account immediately under normal debit procedures.

[0159] The stalled debit 150 allows the institution to stall the debitby issuing a credit to the commercial retail entity 50, financialinstitution or party seeking the debit. The stalled debit 150 providesthat the amount of the debit from a check, a debit check or a debitcard, allows the institution and their customer the use of a float. Themoney in the account is held at the side and awaits the normal checkclearing, electronic, paper or plastic procedure to take the allottedtime by the Federal Reserve 80 to allocate the cash from thistransaction.

[0160] The debit stall 150 sets aside the money for the transactionwithin the customer's bank 40. If the next check that comes in is nowover the balance within the account of the customer 30, the institution,based on their customer relationship, can reject the next transactionand state insufficient funds, or accept the transaction and stall thedebit based on overdraft protection from charge cards, direct bankloans, zero balance account or any other method the bank 40 feelsnecessary to provide to their customer 30. As a result of the UPPDsystem 10, the check register, matching data, verification data andauthentication data may be archived and stored for a desired period oftime, e.g., seven years or the like.

[0161] This is referred to herein as a Safety Check Deposit 160, asdepicted in FIG. 11. For a fee, the data may be stored and recapturedfor the customer 30 or customer bank 40 for retrieval on disasters,catastrophes, bankruptcy, law suits, tax audits, probate and estatere-creation, along with many more reasons the customer 30 might wish forcheck data retrieval. These may also be subscribed to under the FairCredit Reporting Act.

[0162] There are two tiers of tracking for checks, official items, giftcertificates, money orders and other types of data, such aspharmaceutical data, medical data, insurance data and other financialservices. The first tier, which utilizes TrackBack software, has theUPPD system 10 track and search for outstanding codes, numbers andencrypted data on an item waiting to be redeemed, cashed or provided ata point of presentment.

[0163] The TrackBack software provides exclusive use to the customer 30in locating lost, stolen, misplaced items, or items not presented andthat remain outstanding. The second tier of the TrackBack software isutilized for locating instruments through use of GPS. Additionally,instruments of any value may be located in the event of stolen, lost,fraudulent or forged documents. This is also depicted in FIG. 12.

[0164] As shown in FIG. 13, a complete historical behavior of customer30 check writing habits may be compiled to provide another level ofsecurity. If a customer writes twenty checks a month, the customer'sbehavior matrix 180 may track this, much like a credit card. If a largecheck arises or checks appear from different parts of the countryoutside a customer's 30 residence, an alert may prompt an abnormalityfrom the customer's behavior matrix 180 and trigger a confirmation thatany changes are not security breaches on historical data compiled.

[0165] With the historical check writing data compiled from the UPPDdatabase 20 and the customer's behavior matrix 180, a complete credithistory 190 may be generated. The UPPD database 20 may compile credithistories for the proper parties, including the customer's 30 usage forfraud, insufficient funds, late pays, etc. This also meets therequirements for the Fair Credit Reporting Act.

[0166] The UPPD system 10 can also operate in a peer to peer mode. Thisallows a financial institution, ATM network 55 or other entity to housea host or server. This host/server configuration would allow aninstitution the ability to secure data from their customer 30 and passthis directly to the UPPD system 10. This allows the institution theability to house their own customer accounts securely on their ownserver.

[0167] A peer to peer mode also allows the entity the option to carrythe data load and have an off-site source UPPD system 10 for back-up andcatastrophe handling, along with connectivity from peer to peer. All ofthe transmissions would still occur as stated to allow the connectivityto multiple sites in lieu of being bank specific.

[0168] The term “reverse pay” or “negative pay” is similar to the UPPDprocess, except that the process is reversed with the customer 30 thatdownloads their check register. Like “Positive Pay”, reverse pay isutilized as bank specific, and thus it has no connectivity. It does notallow point A to communicate beyond point B through the UPPD database 20and the many networks connecting all points to the UPPD database 20.

[0169] With reverse pay or negative pay, not only does the account keepa list of issued checks, through their check register, but the UPPDdatabase 20 keeps a list of the customers' issued checks. When a checkis presented for payment and clears through the Federal Reserve 80, theFederal Reserve 80 prepares a file of the dollar amounts of the checks,serial numbers and account numbers, and sends the file to the financialinstitution on a bank specific reverse pay format.

[0170] In reverse pay (bank specific), the financial institution sendsthe file to the customer 30, where the customer 30 compares theinformation to its internal records. The customer 30 lets the financialinstitution know which checks match its internal information and thefinancial institutions pays those items. The financial institution thenresearches the checks that do not match, correcting any encoding errorsand any misreads and determines if the items are fraudulent. Thefinancial institution pays only the real or true exceptions that can bereconciled with the customers' files.

[0171] Universal reverse pay or universal negative pay takes thisreverse match to an even higher level of security by having all passthrough the UPPD database 20 back to the bank 60 and the customer 30 anduses either the debit stall or stalled debit 150 to hold funds, butassure the debtor that the funds are not insufficient funds. They are ina stalled debit 150 stall and are transferred once the check goesthrough the regular and normal clearing process and funds availabilityrequirements. The debtor to a debit plastic card or debit paper checkcan be given a credit slip on verification of authenticity.

[0172] A check writing software package, known as DirectCheck, isprovided to the bank 60 and its customers 30, and utilizes the match,authentication, authorization, settlement, and clearing system 10 or thereverse pay/negative pay module, allowing connectivity to variousnetworks, communications devices and the Internet. This DirectChecksoftware runs on MICR laser printers of various manufacturers andprovide security features in printing on blank secure paper checks,official items, financial items and other documents. The TrackBacksoftware may also be included in the DirectCheck software.

[0173] Customers 30 provide signatures for official items to be used bythe UPPD system 10. The signatures are digitized and recognitionsoftware verifies signature matrixes for any abnormalities.

[0174] The UPPD system 10 may be configured for enhanced security byassociating transaction record parameters for customers to the UPPDsystem 10 via biometrics. Biometrics is the technology of personalidentification through validation of an individual's unique physicalcharacteristics, such as DNA, facial structure, iris, retina, fingerprint(s), voice, signature recognition, etc.

[0175] The UPPD system 10 also has the ability to allow or provideimaged, digitized, or electronic conversions of checks, debit cards,debit checks, plastic check cards, smartcards, and paper checks fromdevices included within the UPPD system 10. The UPPD system 10 may issueor accept digitized checks for clearing, matching, verifying andauthenticating. Information such as check amounts, coding, routingnumbers, check dates, signatures, digitized signatures, matrixes andaccount numbers may be verified for a positive match.

[0176] The UPPD system 10 provides that check readers continue in theretail-marketplace, as has been custom. It is the intent of the checkreaders to be placed at every teller station and on the ATM networkstations 55. For readers that provide check data, digitalization may beutilized to place the readers at every possible location acceptingchecks, debit cards and paper debit checks along with the deposit of anyother official item. These readers transmit, via a purchased directline, information to the UPPD system 10. The UPPD system 10 may utilizeexisting networks, such as ATMs 55, AT&T frame systems, automatedclearing house 70 networks, credit card networks and third parties 140,such as TeleCheck, Equifax, and CrossChecks.

[0177] Electronic foils can be embedded within plastic and paperinstruments to transmit the written material data from a customer 30.Foils and chips within the instruments may provide additional securitywith encrypted serialized match numbers. The UPPD system 10 requirescheck readers and credit card readers to transmit a personalizeddigitized signature band or wavelength to any waiting devices for datarecovery and instant transmission. These chips and foils may beprogrammable and configured for use with GPS. A special watermark orhologram can also be placed on these instruments for further security.

[0178] A customer 30 can also receive rewards for proper and timelyexchange of pertinent data. These rewards can include frequent flyermiles as well as travel or other merchandise.

[0179] The UPPD system 10 may also provide the capturing and storing ofelectronic presentation or payment of checks. This includes capturingand storing electronic images of checks. By matching the UPPD system 10protocol, these checks allow financial institutions to make paymentdecisions in real-time by getting access over the Internet, peer to peertransmissions, modems, landlines, wireless systems, check readers andother communications devices, as shown in FIG. 14.

[0180] The electronic processing of the UPPD system 10 also allowscustomers 30 to view their check register immediately in real-time todetermine exceptions, stop pays, insufficient funds, missed items,cancelled checks and voids. A customer 30 writes a check at the point ofpurchase, point of encashment and/or point of presentment and the checkinformation, which can be digitized, imaged or copied, is sent to theUPPD system 10 for authorization and authentication. This same processcan also be done through a third party 140 sending the check data to theUPPD system 10.

[0181] Once the transaction is completed and approved, the customer 30signs an authorization slip. The customer 30 is provided with a copy ofthe authorization slip stamped or printed on the back of the check ordebit check as “cancelled or voided”. The debit check or check iscancelled and can be returned to the customer 30 on the spot. Since thechecks have been converted electronically, they can be transmitted fromeither the commercial retail entity 50 directly to the merchant bank orthrough the UPPD system 10, to provide a batch of electronicallyauthenticated electronic checks for deposit and use of either the ACH70, EFT and stalled debits 150 by the financial institution to theaccount of the customer 30.

[0182] As a result, check clearing is done instantly rather than throughthe cumbersome check clearing system that currently exists. Thecancelled check image, digitalization or data from the check can bearchived for the customer 30, the bank 60 and commercial retail entity50 as described in a universal Positive Pay, universal reverse pay, oruniversal negative pay system. This provides the UPPD system 10 thecustomer's check writing behavioral matrix 180 and the credit history190 gathered on the customer 30, and provides the UPPD system 10 withthe ability to guarantee payment of check funds.

[0183] Additionally, the UPPD system 10 has the ability to acceptrelationships with third parties 140, bank clearing houses 70, ATMs,check guarantee firms and more. This further allows additional security,lower check fees, lower check clearing fees, returned checks, and allowsall parties to settle and balance, including real-time checkreconciliation for the customer 30, the commercial retail entity 50, andthe bank 60.

[0184] This also allows the UPPD system 10, the bank member 60 and thecustomer 30 the ability to guarantee checks for ISF and moreimportantly, authentication and detection of fraud on debit cards, debitchecks, plastic check cards, smart check cards, payroll cards, cashcards, and paper checks instantly. This allows safer use and guaranteesimaged, digitized, and electronic check conversions to all partiesinvolved.

[0185] The UPPD system 10 allows a customer 30 and bank member 60 toinventory and reconcile in real-time. Once the check register or anypositive match information is provided, the customer 30 expedites thecheck related credit postings and the check return process. This allowssame day instant clearing and reconciliation on paid checks. Giftcertificates and money orders may be treated in the same fashion as acheck under the UPPD system 10. The customer 30 uploads the creation ofthis real-time or at a specified time daily. The UPPD system 10 treatsany fraud or ISF issues just like any other official item.

[0186] Through the UPPD system 10, digitized, electronic and paper itemsare cleared in the same fashion as clearing items similar to the FederalReserve 80 or a third party check clearing house 70 or bank. The UPPDsystem 10 provides the proper platform and protocol for clearing anyitems for both a positive match, an universal reverse pay match andcreation of a negative file. The negative file is a file compilingcredit history on the customer 30, along with his historical checkwriting behavior.

[0187] There are thousands of different types of accounting softwarepackages being utilized by financial institutions, commercial accounts,retail establishments and merchants. The UPPD system 10, universalreverse pay and universal negative pay systems can be providedcommercially and may also be available by downloading from the Internetfor a fee. These systems may be used by or connected to for personal useas well as commercial use by any entity desiring complete connectivityand accountability to a standardized form of accounting procedures thatallow further security, easier connectivity and a standard protocol.

[0188] In FIGS. 15A and 15B, bank specific Positive Pay processes 200are shown that may be used with the UPPD processes of the invention.Initially, the payer/payee provides check issue data 202 (e.g., thedate, amount, check number, MICR, bank number, routing number, payableto the order of, any desirable security features, etc.). All gathereddata is then submitted for payment and is then compared to the checkissue data 204. Any and all exception items can be identified andphysically out sorted to remedy 206. Once exception items areidentified, the payer/payee are notified of any incurable items where aNO PAY/PAY decision is made 208. Once the incurable items areidentified, the payer/payee is notified. The items are either paid orreturned pursuant to the payer/payee instructions 210. A payer/payeeUPPD Plus Pay or Issue File is then created 220. The Issue File may thenbe uploaded to the UPPD database according to the invention. As shown inFIGS. 15C-15K, once the Issue File is uploaded to the UPPD, various UPPDoptions 240, 242, 244, 246 occur dependent on users 224, 226, 228, 230,250, 252, 260, 270, 272, or 274.

[0189] The functional diagram 300 in FIG. 16 illustrates how the UPPD314 is configured to interact with bank databases 312, and customers314. The functional diagram 400 in FIG. 17 illustrates how the UPPDdatabase 310 uploads and/or downloads data with users 412 and 414 thatmay be interconnected with a fire wall 416 of shared data.

[0190] The functional diagram 500 in FIG. 18 illustrates how the UPPDdatabase 510 is interconnected with a customer insufficient fundsoverdraft history 520, a customer behavior matrix 522, a customerevaluation risk matrix for bank 524, a customer bank 530, a customerbehavior matrix 540, secure a check software 550, and customer checkwriting and check register 560.

[0191] A functional diagram 600 of an electronic check recovery UPPDprocess according to the present invention is shown in FIG. 19. Afunctional diagram 1050 of a file download, lockbox, and drop box. UPPDprocess according to the present invention is shown in FIG. 20. Flowcharts of file download, lockbox, and drip box UPPD processes 700 and710 according to the present invention are shown, respectively, in FIGS.21A and 21B.

[0192] The file download, lockbox, and drip box UPPD process 700illustrates how a document correspondence arrives and the payment ispresorted. Correspondence may be presorted by the payer, the payee,bank(s), institution(s), company(s), etc. Electronic, truncated,traditional check, ACH, EFT, and/or other means may be utilized and/orconsidered as document correspondence, as shown in FIG. 21B.Correspondence may also be sorted based on the amount due, the lateamount, multiple payment and/or no coupon categories. The payment isthen captured by payment type and a daily capture is made. At the end ofthe day, a lockbox drop box may be loaded, and the lockbox may bearchived.

[0193] Once the lockbox is archived the payer and/or payee customer hasaccess to the lockbox archive. The lockbox archive may also be backed upon any magnetic, optic, and/or electronic memory device as desired, suchas CD ROM, tape, the Internet, computer network(s), etc. The backups maybe reviewed to verify the integrity of the back up. If a backup failureoccurs and/or is detected, a failure report may be generated for users,and/or the backup may be corrected based on the failure. The finalbackup may be checked and backup preparation for the next day may beinitiated.

[0194] The daily data capture may then be processed by a depositcorrection system to determine whether corrections are required and/ordesired in accordance with any predetermined conditions. Deposit and/orbatch reports may be generated and may be reviewed. Deposits are thenbalanced and stops are pulled from the lockbox to enable cash letters tobe prepared. Payment is then made and clean up and preparation is thenmade for the next day.

[0195] When document correspondence arrives, company returncorrespondence may be sorted by the payer, the payee, bank(s),institution(s), company(s), etc. The service provider, the payer, thepayee, bank(s), institution(s), and/or company(s) envelope(s) may thenbe sent.

[0196] In FIGS. 22A, 22B, 22C, and 22D, bank specific Positive Payprocesses 800 are shown in use with UPPD processes of the invention.Initially, the payer/payee provides check issue data 802 (e.g., thedate, amount, check number, MICR, bank number, routing number, payableto the order of, any desirable security features, etc.). All gathereddata is then submitted for payment and is then compared to the checkissue data 804. Any and all exception items can be identified andphysically out sorted to remedy 806. Once exception items areidentified, the payer/payee are notified of any incurable items where aNO PAY/PAY decision is made 808. Once the incurable items areidentified, the payer/payee is notified. The items are either paid orreturned pursuant to the payer/payee instructions 810. A payer/payeeUPPD Plus Pay or Issue File is then created 820. The Issue File may thenbe uploaded to a UPPD database according to the invention.

[0197] Once the Issue File is uploaded to the UPPD database 820, theIssue File may be uploaded and/or downloaded from the payer/payee bank,uploaded and/or directly from the payer/payee, uploaded and/ordownloaded from a perimeter of network(s), disparate database(s),disparate network(s), retail(s), merchant(s), institution(s), andcompany(s). FIG. 22C shows how any and/or all networks may beintereconnected.

[0198] Users may include the payer/payee bank 830, retail(s) 854, thepayee/payer 856, bank(s), ATM(s), localized network ofcommercial/personal entities 860, the drawer/drawer bank 880. Data mayinclude payee information, data, biometrics 840, payer information,data, biometrics 842, etc. Interconnection may occur via a network, PCto PC, business to business, peer to peer 852, a switch network,disparate, localized, or full scale network 870. FIGS. 23A, 23B, 23C,23D, and 23E show flow charts 900 of UPPD processes according to thepresent invention. Initially, the payer/payee provides check issue data902 (e.g., the date, amount, check number, MICR, bank number, routingnumber, payable to the order of, any desirable security features, etc.).All gathered data is then submitted for payment and is then compared tothe check issue data 904. Any and all exception items can be identifiedand physically out sorted to remedy 906. Once exception items areidentified, the payer/payee are notified of any incurable items where aNO PAY/PAY decision is made 908. Once the incurable items areidentified, the payer/payee is notified. The items are either paid orreturned pursuant to the payer/payee instructions 910. FIG. 23B showshow UPPD transaction records of financial transactions may correspond toany type of transaction account, such as a checking account, a savingsaccount, a credit card account, a money market account, a liabilityaccount, a bills/payable account, an asset account, aninvoice/receivables account, a cash account, an insurance policyaccount, an account for a will, an account for a trust, or any otherfinancial account. In a similar manner, FIG. 23C shows how UPPDprocesses for use with reverse pay situations that deal with transactionrecords of financial transactions corresponding to any type oftransaction account. FIG. 23D shows UPPD processes for any type ofsituation (e.g., Positive Pay, reverse pay, negative pay, etc.). FIG.23E illustrates UPPD processes for networks with ATM systems.

[0199] The UPPD processes may be configured to receive originationattributes associated with a transaction instrument to the UPPD databaseand store the received origination attributes in the UPPD database. Thisenables the birth of the transaction instrument, e.g., the document,official item, debit card, debit check, smartcard, check(s) for thepayer/payee, drawer/drawee bank(s), institution(s), company(s),origination attributes associated with the origination of the financialinstrument to be uploaded from a paper mill, manufacturer, distributor,etc. The origination attributes can include the date of creation, thetime of creation, security features, biometrics, plant location, thepressman, the date shipped, etc., and provides a payer/payee standingfile residing within the UPPD database that is readable by all parties.Generally, the origination attributes may be an origination entity, anorigination location, an origination date, an origination time, securityfeatures, biometrics, origination personnel, origination shipping date,etc. Transaction records for any financial transaction may also beprocessed with the UPPD software.

[0200] Functional diagrams 1000 of UPPD processes according to thepresent invention are shown in FIGS. 24A, 24B, 24C, 24D, 24E, and 24F.These diagrams 1000 show the use of truncation banks with the UPPDsystem and what occurs when the payer presents a transaction instrumentat a POS financial transaction. FIG. 24D illustrates what occurs whenthe UPPD checks whether a retailer is using a UPPD payroll check.

[0201] A functional diagram 1050 of a UPPD process regarding anelectronic check presentment according to the present invention is shownin FIG. 25. Functional diagrams 1100 of UPPD processes regarding POE,POP, and POS financial transactions according to the present inventionare shown in FIGS. 26A, 26B, 26C, 26D, and 26E. A functional diagram1200 of a UPPD system according to the present invention is shown inFIG. 27. Functional diagrams 1300 and 1310 of UPPD processes accordingto the present invention are shown, respectively, in FIGS. 28A and 28B.

[0202] A functional diagram 1400 of a point of sale transactionutilizing a UPPD system according to the present invention is shown inFIG. 29. This diagram 1400 illustrates the process that occurs when aPOS, POE, or POP terminal asks whether a bank associated with afinancial instrument presented for a POS, POE, or POP financialtransaction is a UPPD member. A functional diagram 1500 of a UPPD systemregarding ACH, EFT, or other money transfer processes according to thepresent invention is shown in FIG. 30. A functional diagram 1600 of aUPPD system regarding Check 21, wireless, imaging, ACH, EFT, etc.,according to the present invention is shown in FIG. 31.

[0203] Functional diagrams 1700, 1710, 1720, 1730, 1740, 1750 of UPPDprocesses regarding transparency according to the present invention areshown, respectively, in FIGS. 32A, 32B, 32C, 32D, 32E, and 32F. Afunctional diagram 1800 of the use of a personal identification number(PIN) with a UPPD system according to the present invention is shown inFIG. 33. Functional diagrams 1900 and 1910 of UPPD processes accordingto the present invention are shown, respectively, in FIGS. 34A and 34B.

[0204] Diagrams 2000 and 2010 of security measures for use with a UPPDsystem according to the present invention are shown, respectively, inFIGS. 35A and 35B. A functional diagram 2100 of biometric securitymeasures for use with a UPPD system according to the present inventionis shown in FIG. 36. A functional diagram 2200 of a UPPD systemaccording to the present invention is shown in FIG. 37.

[0205] A UPPD system, method, and/or computer useable medium accordingto the invention can reposition the way commercial and personal checks,debit cards, and debit check are processed. The UPPD system, method,and/or computer useable medium eliminates the potential fraud associatedwith these checks, but can drive down transaction costs associated withsuch checks, to the benefit of all parties involved in the process.

[0206] The UPPD system, method, and/or computer useable medium can, thruthird party vendors currently in business, verify the validity of acommercial check, at the point of sale, and move the associated fundselectronically, avoiding both paper processing, and the Federal ReserveACH. In doing so, fraud is eliminated and transaction costs are greatlyreduced. Parties that can benefit through use of the UPPD databaseinclude the merchant, the check guarantee vendor, the check issuer, theon-us bank, etc.

[0207] By providing service via the UPPD system, merchants can now takecommercial checks as payment for goods. This brings customers into theirbusinesses, and increases sales, without the risk of loss. Given thatthe checks can be terminated at the point of sale, thru existingequipment, the cost for depositing that item goes down, saving themerchants depository fees, as well as staff time in preparing andbalancing check deposits.

[0208] Most check guarantee vendors charge their merchants on a pertransaction basis. By adding commercial checks to the offering via theUPPD system, the volume of checks guaranteed may increase, resulting inincreased revenue to the check guarantee provider.

[0209] The UPPD system offers companies issuing checks an increasedlikelihood that any attempts at defrauding the company thru checkmanipulation may be stopped at the point of encashment. Additionally,since the checks are cleared electronically, cost is driven from thetransaction, giving the check issuing company an opportunity for areduction in bank related fees.

[0210] Since the checks of an on-us bank may be verified at the point ofencashment with the UPPD system, the potential for fraud is eliminated,reducing exposure for both the bank, and the banks check issuing client.Additionally, since the check is processed entirely by the UPPD system,the bank may not incur either paper processing costs, or ACH fees. Thisallows the bank the option of increased margin, while passing a savingsto its client.

[0211] The inventive UPPD system, method, and/or computer useable mediumis the first technology to authenticate a paper check for all processeswithin a financial institution's check clearing chain. Any point alongthe clearing chain that finds a discrepancy can stop the check processindefinitely or until the discrepancy has been validated. To makeparticipation easy, the UPPD system, method, and/or computer useablemedium relies on an Issue File format which coincides with the PositivePay file format, as well as enables the use of additional features. Whenthe account holder produces checks, the UPPD database can be updatedinstantly with the correct check information. This way the UPPD system,method, and/or computer useable medium offers far greater check securityfor the most common types of check fraud—the forged or stolen check.

[0212] Since the UPPD system, method, and/or computer useable medium caneliminate the clearing chain, it can provide an even greater level ofprotection against check and debit check fraud. For one of manyexamples, when a UPPD Check Issuer, located in Houston, prints checks,an electronic record of each check is loaded into the UPPD. If one ofthose checks is presented at Home Depot in Chicago, then severalscenarios could occur.

[0213] If Home Depot is not a member of the UPPD network, they then mustmake a blind decision on whether to cash the check or not, and wait anumber of days to learn whether the check was valid. If Home Depot is aUPPD member, they would scan the check, and the electronic record wouldbe transmitted to the UPPD database, and matched against the originalcheck issue, which could yield the following results: (1) The match issuccessful, and Home Depot can accept the check as payment for themerchandise; (2) The match is unsuccessful, and Home Depot rejects thecheck, and avoids a loss from a fraudulent instrument.

[0214] Depending on the level of matching information, the Check Issuer,and his bank can receive warnings of attempted encashments against thebank and the account. By building a history of attempted fraudulentencashments, the UPPD system, method, and/or computer useable medium canbecome instrumental in the pinpointing of patterns, and be able topredict future attempts. This information will become valuable in theeventual identification of habitual perpetrators, and the eliminationfraud rings.

[0215] With the UPPD system, method, and/or computer useable medium, assoon as the fraud is identified, the UPPD database will be updated andthe check stopped before it clears, protecting the account holders'funds.

[0216] UPPD offers the greatest possibility to eliminate check fraudover any other check fraud detection system. As the numbers ofparticipating financial institutions and merchants grow, the possibilityof check fraud is diminished. This is based on the fact that the UPPDdatabase provides a single repository of information for all financialinstitutions and check issuers to populate, and all merchants to use tovalidate the authenticity of the check. The following is a simpleexample of how the UPPD system, method, and/or computer useable mediumwould work.

[0217] Via existing technology using traditional phone, data lines orover the Internet, a business or other check issuing entity mayroutinely send to the UPPD system an Issue File that providesinformation regarding checks written against their account. The fileincludes a record of each check's issue date, amount, check number,account number, and the payee name. When the check is presented forencashment, the UPPD system can be accessed to verify that theinformation on the check matches the Issue File downloaded by the checkissuer to the UPPD system. If the information is inconsistent orunavailable, the UPPD system can notify the requestor. If the check hasbeen forged or altered, the payment process can be interrupted and theloss avoided.

[0218] While the invention has been described with references to itspreferred embodiment, it will be understood by those skilled in the artthat various changes may be made and equivalents may be substituted forelements thereof without departing from the true spirit and scope of theinvention. In addition, many modifications may be made to adapt aparticular situation or material to the teaching of the inventionwithout departing from its essential teachings.

I claim:
 1. A Universal Positive Pay Database (UPPD) method comprising:providing a UPPD database configured to store thereon transactionrecords associated with financial transactions corresponding tocustomers of the UPPD database, each transaction record being configuredto include parameters associated with a certain financial transaction;initiating a particular financial transaction between a payer and apayee by providing parameters associated with the particular financialtransaction to the UPPD database; providing an Issue File to the UPPDdatabase, the Issue File including parameters associated with theparticular financial transaction, the particular financial transactionbeing associated with a drawee bank; determining correspondence betweenthe parameters associated with the particular financial transaction fromthe Issue File and the parameters associated with the particularfinancial transaction provided to the UPPD database to initiate theparticular financial transaction at every point along a financialtransaction clearing process; and facilitating access to thecorrespondence determination by the customer, payer, payee, payee bank,drawee bank, and banking institutions intermediate the payee bank andthe drawee bank at every point along a financial transaction clearingprocess.
 2. The UPPD method according to claim 1, further comprising thesteps: providing a computer useable medium; and providing a computerdevice having a processor.
 3. The UPPD method according to claim 1,wherein the providing a computer device step further comprises:configuring the computer device as a desktop computer, a laptopcomputer, a palmtop computer, a network computer, a personal digitalassistant (PDA), an embedded device, or a smart phone.
 4. The UPPDmethod according to claim 1, wherein the providing a computer useablemedium step further comprises: configuring the computer useable mediumas a non-volatile medium, a volatile medium, or an installation medium.5. The UPPD method according to claim 1, wherein the configuring thecomputer useable medium step further comprises: configuring the computeruseable medium as a magnetic medium, hard disk, a solid state disk,optical storage, Flash memory, electrically eraseable programmable readonly memory (EEPROM), or a parameter random access memory (PRAM).
 6. TheUPPD method according to claim 1, wherein the configuring the computeruseable medium step further comprises: configuring the computer useablemedium as a dynamic RAM (DRAM), Direct Rambus® DRAM (DRDRAM),double-data rate DRAM (DDR DRAM), double-data rate synchronous DRAM (DDRSDRAM), enhanced DRAM (EDRAM), enhanced synchronous DRAM (ESDRAM),extended data out (EDO) DRAM, burst EDO (BEDO) DRAM, fast page mode DRAM(FPM DRAM), Rambus DRAM (RDRAM), SyncLink® DRAM (SLDRAM), synchronousRAM (SRAM), synchronous DRAM (SDRAM), synchronous graphic RAM (SGRAM),video RAM (VRAM), or a window RAM (WRAM).
 7. The UPPD method accordingto claim 1, wherein the configuring the computer useable medium stepfurther comprises: configuring the computer useable medium as a CD-ROM,a floppy disk, or a removable disk.
 8. The UPPD method according toclaim 1, wherein the providing a UPPD database step further comprisesproviding a network system.
 9. The UPPD method according to claim 1,wherein the providing a network system step further comprises:configuring the network system as a local area network (LAN), a widearea network (WAN), an intranet, an extranet, or the Internet.
 10. TheUPPD method according to claim 1, wherein the providing a UPPD databasestep further configuring the UPPD database as a plurality of separate ordisparate databases interconnected through the network system.
 11. TheUPPD method according to claim 1, further comprising providing atransaction instrument configured to initiate a financial transactionbetween a payer and a payee.
 12. The UPPD method according to claim 1,wherein said providing a transaction instrument step further comprisesproviding a transaction instrument in the form of a paper/electroniccheck, a debit card, a debit check, a credit card, or a smartcard. 13.The UPPD method according to claim 1, wherein said providing atransaction instrument step further comprises providing a transactioninstrument in the form of a point of sale (POS) terminal, a point ofpresentment (POP) terminal, a point of escheat (POE) terminal, a pointof data (POD) terminal, or an automated teller machine (ATM).
 14. TheUPPD method according to claim 1, wherein said providing a transactioninstrument step further comprises: providing a transaction instrument inthe form of a personal digital assistant (PDA), a telephone, a cellulartelephone, a cordless telephone, a pager, a watch, a television, aradio, a compact disc (CD) player, a tape player, a copier, a facsimilemachine.
 15. The UPPD method according to claim 1, further comprising:providing a telephone; and providing means for demodulating transactionrecords from a telephone carrier signal.
 16. The UPPD method accordingto claim 1, further comprising: providing a telephone; and providing avoice recognition device coupled to said telephone and said UPPDdatabase.
 17. The UPPD method according to claim 1, further comprising:providing plastic card financial instruments selected from a groupconsisting of credit cards, debit cards, stored value cards and smartcards.
 18. The UPPD method according to claim 1, further comprising:providing an optical character recognition device.
 19. The UPPD methodaccording to claim 1, further comprising: providing a magnetic-inkcharacter recognition device.
 20. The UPPD method according to claim 1,further comprising: providing a digital technology recognition system.21. The UPPD method according to claim 1, further comprising: providinga fingerprint recognition system.
 22. The UPPD method according to claim1, further comprising: providing an iris recognition system.
 23. TheUPPD method according to claim 1, further comprising: providing arecognition system based on DNA technology.
 24. The UPPD methodaccording to claim 1, further comprising: providing a matrix technologyrecognition system.
 25. The UPPD method according to claim 1, whereinsaid initiating a particular financial transaction step furthercomprises: providing parameters associated with a check number, an issuedate, a payee, a routing number, and an account number.
 26. The UPPDmethod according to claim 1, wherein said initiating a particularfinancial transaction step further comprises: providing parametersassociated with a payer name, a payee name, payer personal specifics,payee personal specifics, a transaction instrument, and an accountnumber.
 27. The UPPD method according to claim 1, wherein saidinitiating a particular financial transaction step further comprises:providing parameters associated with an account number.
 28. The UPPDmethod according to claim 27, wherein said providing parametersassociated with an account number step further comprises: providing achecking account number, a savings account nummber, a credit cardaccount number, a money market account number, a liability accountnumber, a bills/payable account number, an asset account number, aninvoice/receivables account number, a cash account number, an insurancepolicy account number, an account number for a will, or an accountnumber for a trust.
 29. The UPPD method according to claim 1, whereinsaid initiating a particular financial transaction step furthercomprises: providing parameters associated with a personalidentification number (PIN).
 30. The UPPD method according to claim 1,wherein said initiating a particular financial transaction step furthercomprises: providing parameters associated with a digital signature. 31.The UPPD method according to claim 1, wherein said initiating aparticular financial transaction step further comprises: providingparameters associated with biometric data.
 32. The UPPD method accordingto claim 31, wherein said providing parameters associated with biometricdata step further comprises: providing parameters associated withDeoxyriboNucleic Acid (DNA), facial structure, iris, retina, fingerprint, voice, or signature.
 33. The UPPD method according to claim 1,wherein said initiating a particular financial transaction step furthercomprises: creating the Issue File based on an Automated Clearing House(ACH) based electronic check.
 34. The UPPD method according to claim 1,wherein said initiating a particular financial transaction step furthercomprises: creating the Issue File based on an Electronic Funds Transfer(EFT) based electronic check.
 35. The UPPD method according to claim 1,wherein said initiating a particular financial transaction step furthercomprises: creating the Issue File based on an Internet initiatedpayment.
 36. The UPPD method according to claim 1, wherein saidinitiating a particular financial transaction step further comprises:creating the Issue File in accordance with the Check Truncation Act. 37.The UPPD method according to claim.1, wherein said UPPD software furthercauses the processor to carry out steps comprising: processingincoming/outgoing data for the UPPD database in accordance with CHECK21.
 38. The UPPD method according to claim 1, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: searchingand capturing check register information for abandoned property subjectto escheat.
 39. The UPPD method according to claim 1, wherein said UPPDsoftware further causes the processor to carry out steps comprising:automatically polling check register information for storage on saidUPPD database.
 40. The UPPD method according to claim 1, wherein saidUPPD software further causes the processor to carry out stepscomprising: performing a reconciliation of transaction record parameterinformation.
 41. The UPPD method according to claim 1, wherein said UPPDsoftware further causes the processor to carry out steps comprising:locating lost, stolen, misplaced items and items not presented and thatremain outstanding.
 42. The UPPD method according to claim 1, whereinsaid UPPD software further causes the processor to carry out stepscomprising: archiving and storing check register, matching data,verification data, and authentication data for a predetermined period oftime.
 43. The UPPD method according to claim 1, wherein said UPPDsoftware further causes the processor to carry out steps comprising:performing a debit stall and stalled debit procedure.
 44. The UPPDmethod according to claim 1, wherein said UPPD software further causesthe processor to carry out steps comprising: making a financialtransaction history compilation for a payer who executes financialtransactions based upon transaction record parameters.
 45. The UPPDmethod according to claim 1, wherein said UPPD software further causesthe processor to carry out steps comprising: compiling a behavior matrixfor payers who execute financial transactions based upon financialrecords associated with the executed financial transactions.
 46. TheUPPD method according to claim 1, wherein said UPPD software furthercauses the processor to carry out steps comprising: authenticating,authorizing, and clearing financial transactions executed by payers at apoint of purchase, at a point of presentment, and at a point ofencashment.
 47. The UPPD method according to claim 1, wherein said UPPDsoftware further causes the processor to carry out steps comprising:enabling payers who execute financial transactions to view theirtransaction records associated with the executed financial transactionsin real-time.
 48. The UPPD method according to claim 1, wherein saidUPPD software further causes the processor to carry out stepscomprising: transmitting a web-based form to said database via theInternet.
 49. The UPPD method according to claim l wherein said UPPDsoftware further causes the processor to carry out steps comprising:obtaining financial transaction issue data from a payer/payee regardinga particular financial transaction; comparing the obtained financialtransaction issue data with financial transaction issue data from apreviously obtained data associated with the particular financialtransaction; identifying and sorting out exception items for theobtained financial transaction issue data that do not match with thefinancial transaction issue data from the previously data associatedwith the particular financial transaction; making a NO PAY/PAY decisionregarding the obtained financial transaction issue data; notifying thepayer/payee of the NO PAY/PAY decision that has been made regarding theobtained financial transaction issue data; creating a payer/payee IssueFile; and uploading the Issue File to the UPPD database.
 50. The UPPDmethod according to claim 1, wherein said UPPD software further causesthe processor to carry out steps comprising: processing financialtransactions to carry out deletes, reversals, fraud filtering, stoppays, returns, or unauthorized financial transactions.
 51. The UPPDmethod according to claim 50, wherein said processing financialtransactions step further comprises: providing financial transactions asautomated clearing house, electronic funds transfer, wire, or othermoney transfers.
 52. The UPPD method according to claim 50, wherein saidUPPD software further causes the processor to carry out stepscomprising: providing a UPPD viewable or hard copy statement for thepayer/payee.
 53. The UPPD method according to claim 1, wherein said UPPDsoftware further causes the processor to carry out steps comprising:processing financial transactions associated with payments fromgovernment, taxes, payer/payee, vendors, payroll, accounts payables, ordirect deposits.
 54. The UPPD method according to claim 53, wherein saidprocessing financial transactions step further comprises: providingfinancial transactions as automated clearing house, electronic fundstransfer, wire, or other money transfers.
 55. The UPPD method accordingto claim 53, wherein said processing financial transactions step furthercomprises: providing a UPPD viewable or hard copy statement for thepayer/payee.
 56. The UPPD method according to claim 1, wherein said UPPDsoftware further causes the processor to carry out steps comprising:processing account reconciliation reporting for stop pays, reversed stoppays, voids, cancelled transactions, debit stalls, pay or not paid,returns, or preauthorization on specific transactions.
 57. The UPPDmethod according to claim 56, wherein said processing accountreconciliation reporting step further comprises: providing a UPPDviewable or hard copy statement for the payer/payee.
 58. The UPPD methodaccording to claim 1, wherein said UPPD software further causes theprocessor to carry out steps comprising: creating an Issue File imagereport from archived/exchanged downloaded/uploaded images on exceptionitems for determination on pay or no pays.
 59. The UPPD method accordingto claim 58, wherein said creating an Issue File image report stepfurther comprises: providing a UPPD viewable or hard copy statement forthe payer/payee.
 60. The UPPD method according to claim 1, wherein saidUPPD software further causes the processor to carry out stepscomprising: creating an Issue File image report of an electronicallyconverted check or official item.
 61. The UPPD method according to claim60, wherein said creating an Issue File image report step furthercomprises: archiving the image report for substitute or replication bythe UPPD system.
 62. The UPPD method according to claim 1, wherein saidUPPD software further causes the processor to carry out stepscomprising: processing enabled electronic bill pay or collections foraccounts receivable, bill payment, lock box, and drop box.
 63. The UPPDmethod according to claim 62, wherein said processing enabled electronicbill pay step further comprises: providing a UPPD viewable or hard copystatement for the payer/payee.
 64. The UPPD method according to claim 1,wherein said UPPD software further causes the processor to carry outsteps comprising: receiving origination attributes associated with atransaction instrument; and storing the received origination attributesin the UPPD database.
 65. The UPPD method according to claim 64, whereinsaid providing origination attributes step further comprises: providingorigination attributes including an origination entity, an originationlocation, an origination date, an origination time, security features,biometrics, origination personnel, or origination shipping date.
 66. TheUPPD method according to claim 1, wherein said UPPD software furthercauses the processor to carry out steps comprising: enabling anytransaction record for any financial transaction to be processed withthe UPPD software.
 67. A Universal Positive Pay Database (UPPD) systemcomprising: a computer useable medium; and a computer device having aprocessor; wherein said computer useable medium carries thereon UPPDsoftware, which, when executed by the processor, causes the processor tocarry out steps comprising: providing a UPPD database configured tostore thereon transaction records associated with financial transactionscorresponding to customers of the UPPD database, each transaction recordbeing configured to include parameters associated with a particularfinancial transaction; initiating a particular financial transactionbetween a payer and a payee by providing parameters associated with theparticular financial transaction to the UPPD database; providing anIssue File to the UPPD database, the Issue File including parametersassociated with the particular financial transaction, the particularfinancial transaction being associated with a drawee bank; determiningcorrespondence between the parameters associated with the particularfinancial transaction from the Issue File and the parameters associatedwith the particular financial transaction provided to the UPPD databaseto initiate the particular financial transaction at every point along afinancial transaction clearing process; and facilitating access to thecorrespondence determination by the customer, payer, payee, payee bank,drawee bank, and banking institutions intermediate the payee bank andthe drawee bank at every point along a financial transaction clearingprocess.
 68. The UPPD system according to claim 67, wherein saidcomputer device is a desktop computer, a laptop computer, a palmtopcomputer, a network computer, a personal digital assistant (PDA), anembedded device, or a smart phone.
 69. The UPPD system according toclaim 67, wherein said computer useable medium is a non-volatile medium,a volatile medium, or an installation medium.
 70. The UPPD systemaccording to claim 69, wherein said computer useable medium is amagnetic medium, hard disk, a solid state disk, optical storage, Flashmemory, electrically eraseable programmable read only memory (EEPROM),or a parameter random access memory (PRAM).
 71. The UPPD systemaccording to claim 69, wherein said computer useable medium is a dynamicRAM (DRAM), Direct Rambus® DRAM (DRDRAM), double-data rate DRAM (DDRDRAM), double-data rate synchronous DRAM (DDR SDRAM), enhanced DRAM(EDRAM), enhanced synchronous DRAM (ESDRAM), extended data out (EDO)DRAM, burst EDO (BEDO) DRAM, fast page mode DRAM (FPM DRAM), Rambus DRAM(RDRAM), SyncLink® DRAM (SLDRAM), synchronous RAM (SRAM), synchronousDRAM (SDRAM), synchronous graphic RAM (SGRAM), video RAM (VRAM), or awindow RAM (WRAM).
 72. The UPPD system according to claim 69, whereinsaid computer useable medium is a CD-ROM, a floppy disk, or a removabledisk.
 73. The UPPD system according to claim 67, further comprising anetwork system.
 74. The UPPD system according to claim 73, wherein saidnetwork system is a local area network (LAN), a wide area network (WAN);an intranet, an extranet, or the Internet.
 75. The UPPD system accordingto claim 67, wherein said UPPD database is configured as a plurality ofseparate or disparate databases interconnected through the networksystem.
 76. The UPPD system according to claim 67, further comprising atransaction instrument configured to initiate a financial transactionbetween a payer and a payee.
 77. The UPPD system according to claim 76,wherein said transaction instrument includes a paper/electronic check, adebit card, a debit check, a credit card, or a smartcard.
 78. The UPPDsystem according to claim 76, wherein said transaction instrumentincludes a point of sale (POS) terminal, a point of presentment (POP)terminal, a point of escheat (POE) terminal, a point of data (POD)terminal, or an automated teller machine (ATM).
 79. The UPPD systemaccording to claim 76, wherein said transaction instrument includes apersonal digital assistant (PDA), a telephone, a cellular telephone, acordless telephone, a pager, a watch, a television, a radio, a compactdisc (CD) player, a tape player, a copier, a facsimile machine.
 80. TheUPPD system according to claim 67, further comprising: (a) a telephone;and (b) means for demodulating transaction records from a telephonecarrier signal.
 81. The UPPD system according to claim 67, furthercomprising: (a) a telephone; and (b) a voice recognition device coupledto said telephone and said UPPD database.
 82. The UPPD system accordingto claim 67, further comprising: plastic card financial instrumentsselected from a group consisting of credit cards, debit cards, storedvalue cards and smart cards.
 83. The UPPD system according to claim 67,further comprising: an optical character recognition device.
 84. TheUPPD system according to claim 67, further comprising: a magnetic-inkcharacter recognition device.
 85. The UPPD system according to claim 67,further comprising: a digital technology recognition system.
 86. TheUPPD system according to claim 67, further comprising: a fingerprintrecognition system.
 87. The UPPD system according to claim 67, furthercomprising: an iris recognition system.
 88. The UPPD system according toclaim 67, further comprising: a recognition system based on DNAtechnology.
 89. The UPPD system according to claim 67, furthercomprising: a matrix technology recognition system.
 90. The UPPD systemaccording to claim 67, wherein said initiating a particular financialtransaction step further comprises: providing parameters associated witha check number, an issue date, a payee, a routing number, and an accountnumber.
 91. The UPPD system according to claim 67, wherein saidinitiating a particular financial transaction step further comprises:providing parameters associated with a payer name, a payee name, payerpersonal specifics, payee personal specifics, a transaction instrument,and an account number.
 92. The UPPD system according to claim 67,wherein said initiating a particular financial transaction step furthercomprises: providing parameters associated with an account number. 93.The UPPD system according to claim 67, wherein said providing parametersassociated with an account number step further comprises: providing achecking account number, a savings account nummber, a credit cardaccount number, a money market account number, a liability accountnumber, a bills/payable account number, an asset account number, aninvoice/receivables account number, a cash account number, an insurancepolicy account number, an account number for a will, or an accountnumber for a trust.
 94. The UPPD system according to claim 67, whereinsaid initiating a particular financial transaction step furthercomprises: providing parameters associated with a personalidentification number (PIN).
 95. The UPPD system according to claim 67,wherein said initiating a particular financial transaction step furthercomprises: providing parameters associated with a digital signature. 96.The UPPD system according to claim 67, wherein said initiating aparticular financial transaction step further comprises: providingparameters associated with biometric data.
 97. The UPPD system accordingto claim 96, wherein said providing parameters associated with biometricdata step further comprises: providing parameters associated withDeoxyriboNucleic Acid (DNA), facial structure, iris, retina, fingerprint, voice, or signature.
 98. The UPPD system according to claim 67,wherein said initiating a particular financial transaction step furthercomprises: creating the Issue File based on an Automated Clearing House(ACH) based electronic check.
 99. The UPPD system according to claim 67,wherein said initiating a particular financial transaction step furthercomprises: creating the Issue File based on an Electronic Funds Transfer(EFT) based electronic check.
 100. The UPPD system according to claim67, wherein said initiating a particular financial transaction stepfurther comprises: creating the Issue File based on an Internetinitiated payment.
 101. The UPPD system according to claim 67, whereinsaid initiating a particular financial transaction step furthercomprises: creating the Issue File in accordance with the CheckTruncation Act.
 102. The UPPD system according to claim 67, wherein saidUPPD software further causes the processor to carry out stepscomprising: processing incoming/outgoing data for the UPPD database inaccordance with CHECK
 21. 103. The UPPD system according to claim 67,wherein said UPPD software further causes the processor to carry outsteps comprising: searching and capturing check register information forabandoned property subject to escheat.
 104. The UPPD system according toclaim 67, wherein said UPPD software further causes the processor tocarry out steps comprising: automatically polling check registerinformation for storage on said UPPD database.
 105. The UPPD systemaccording to claim 67, wherein said UPPD software further causes theprocessor to carry out steps comprising: performing a reconciliation oftransaction record parameter information.
 106. The UPPD system accordingto claim 67, wherein said UPPD software further causes the processor tocarry out steps comprising: locating lost, stolen, misplaced items anditems not presented and that remain outstanding.
 107. The UPPD systemaccording to claim 67, wherein said UPPD software further causes theprocessor to carry out steps comprising: archiving and storing checkregister, matching data, verification data, and authentication data fora predetermined period of time.
 108. The UPPD system according to claim67, wherein said UPPD software further causes the processor to carry outsteps comprising: performing a debit stall and stalled debit procedure.109. The UPPD system according to claim 67, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: making afinancial transaction history compilation for a payer who executesfinancial transactions based upon transaction record parameters. 110.The UPPD system according to claim 67, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: compiling abehavior matrix for payers who execute financial transactions based uponfinancial records associated with the executed financial transactions.111. The UPPD system according to claim 67, wherein said UPPD softwarefurther causes the processor to carry out steps comprising:authenticating, authorizing, and clearing financial transactionsexecuted by payers at a point of purchase, at a point of presentment,and at a point of encashment.
 112. The UPPD system according to claim67, wherein said UPPD software further causes the processor to carry outsteps comprising: enabling payers who execute financial transactions toview their transaction records associated with the executed financialtransactions in real-time.
 113. The UPPD system according to claim 67,wherein said UPPD software further causes the processor to carry outsteps comprising: transmitting a web-based form to said database via theInternet.
 114. The UPPD system according to claim 67, wherein said UPPDsoftware further causes the processor to carry out steps comprising:obtaining financial transaction issue data from a payer/payee regardinga particular financial transaction; comparing the obtained financialtransaction issue data with financial transaction issue data from apreviously obtained data associated with the particular financialtransaction; identifying and sorting out exception items for theobtained financial transaction issue data that do not match with thefinancial transaction issue data from the previously data associatedwith the particular financial transaction; making a NO PAY/PAY decisionregarding the obtained financial transaction issue data; notifying thepayer/payee of the NO PAY/PAY decision that has been made regarding theobtained financial transaction issue data; creating a payer/payee IssueFile; and uploading the Issue File to the UPPD database.
 115. The UPPDsystem according to claim 67, wherein said UPPD software further causesthe processor to carry out steps comprising: processing financialtransactions to carry out deletes, reversals, fraud filtering, stoppays, returns, or unauthorized financial transactions.
 116. The UPPDsystem according to claim 115, wherein said processing financialtransactions step further comprises: providing financial transactions asautomated clearing house, electronic funds transfer, wire, or othermoney transfers.
 117. The UPPD system according to claim 115, whereinsaid processing financial transactions step further comprises: providinga UPPD viewable or hard copy statement for the payer/payee.
 118. TheUPPD system according to claim 67, wherein said UPPD software furthercauses the processor to carry out steps comprising: processing financialtransactions associated with payments from government, taxes,payer/payee, vendors, payroll, accounts payables, or direct deposits.119. The UPPD system according to claim 118, wherein said processingfinancial transactions step further comprises: providing financialtransactions as automated clearing house, electronic funds transfer,wire, or other money transfers.
 120. The UPPD system according to claim118, wherein said processing financial transactions step furthercomprises: providing a UPPD viewable or hard copy statement for thepayer/payee.
 121. The UPPD system according to claim 67, wherein saidUPPD software further causes the processor to carry out stepscomprising: processing account reconciliation reporting for stop pays,reversed stop pays, voids, cancelled transactions, debit stalls, pay ornot paid, returns, or preauthorization on specific transactions. 122.The UPPD system according to claim 121, wherein said processing accountreconciliation reporting step further comprises: providing a UPPDviewable or hard copy statement for the payee/payer.
 123. The UPPDsystem according to claim 67, wherein said UPPD software further causesthe processor to carry out steps comprising: creating an Issue Fileimage report from archived/exchanged downloaded/uploaded images onexception items for determination on pay or no pays.
 124. The UPPDsystem according to claim 123, wherein said creating an Issue File imagereport step further comprises: providing a UPPD viewable or hard copystatement for the payee/payer.
 125. The UPPD system according to claim67, wherein said UPPD software further causes the processor to carry outsteps comprising: creating an Issue File image report of anelectronically converted check or official item.
 126. The UPPD systemaccording to claim 125, wherein said creating an Issue File image reportstep further comprises: archiving the image report for substitute orreplication by the UPPD system.
 127. The UPPD system according to claim67, wherein said UPPD software further causes the processor to carry outsteps comprising: processing enabled electronic bill pay or collectionsfor accounts receivable, bill payment, lock box, and drop box.
 128. TheUPPD system according to claim 127, wherein said processing enabledelectronic bill pay step further comprises: providing a UPPD viewable orhard copy statement for the payer/payee.
 129. The UPPD system accordingto claim 67, wherein said UPPD software further causes the processor tocarry out steps comprising: receiving origination attributes associatedwith a transaction instrument to the UPPD database; and storing thereceived origination attributes in the UPPD database.
 130. The UPPDmethod according to claim 67, wherein said providing originationattributes step further comprises: providing origination attributesincluding an origination entity, an origination location, an originationdate, an origination time, security features, biometrics, originationpersonnel, or origination shipping date.
 131. The UPPD system accordingto claim 67, wherein said UPPD software further causes the processor tocarry out steps comprising: enabling any transaction record for anyfinancial transaction to be processed with the UPPD software.
 132. Acomputer useable medium carrying Universal Positive Pay Database (UPPD)software which, when executed by a processor, causes the processor tocarry out steps comprising: providing a UPPD database configured tostore thereon transaction records associated with financial transactionscorresponding to customers of the UPPD database, each transaction recordbeing configured to include parameters associated with a particularfinancial transaction; initiating a particular financial transactionbetween a payer and a payee by a customer of the UPPD database byproviding parameters associated with the particular financialtransaction to the UPPD database; providing an Issue File to the UPPDdatabase, the Issue File including parameters associated with theparticular financial transaction, the particular financial transactionbeing associated with a drawee bank; determining correspondence betweenthe parameters associated with the particular financial transaction fromthe Issue File and the parameters associated with the particularfinancial transaction provided to the UPPD database to initiate theparticular financial transaction at every point along a financialtransaction clearing process; and facilitating access to thecorrespondence determination by the customer, payer, payee, payee bank,drawee bank, and banking institutions intermediate the payee bank andthe drawee bank at every point along a financial transaction clearingprocess.
 133. The computer useable medium according to claim 132, incombination with a computer device having a processor.
 134. Thecombination according to claim 132, wherein said computer device is adesktop computer, a laptop computer, a palmtop computer, a networkcomputer, a personal digital assistant (PDA), an embedded device, or asmart phone.
 135. The computer useable medium according to claim 132,wherein said computer useable medium is a non-volatile medium, avolatile medium, or an installation medium.
 136. The computer useablemedium according to claim 135, wherein said computer useable medium is amagnetic medium, hard disk, a solid state disk, optical storage, Flashmemory, electrically eraseable programmable read only memory (EEPROM),or a parameter random access memory (PRAM).
 137. The computer useablemedium according to claim 135, wherein said computer useable medium is adynamic RAM (DRAM), Direct Rambus® DRAM (DRDRAM), double-data rate DRAM(DDR DRAM), double-data rate synchronous DRAM (DDR SDRAM), enhanced DRAM(EDRAM), enhanced synchronous DRAM (ESDRAM), extended data out (EDO)DRAM, burst EDO (BEDO) DRAM, fast page mode DRAM (FPM DRAM), Rambus DRAM(RDRAM), SyncLink® DRAM (SLDRAM), synchronous RAM (SRAM), synchronousDRAM (SDRAM), synchronous graphic RAM (SGRAM), video RAM (VRAM), or awindow RAM (WRAM).
 138. The computer useable medium according to claim135, wherein said computer useable medium is a CD-ROM, a floppy disk, ora removable disk.
 139. The computer useable medium according to claim132, in combination with a network system.
 140. The combinationaccording to claim 139, wherein said network system is a local areanetwork (LAN), a wide area network (WAN), an intranet, an extranet, orthe Internet.
 141. The combination according to claim 132, wherein saidUPPD database is configured as a plurality of separate or disparatedatabases interconnected through the network system.
 142. The computeruseable medium to claim 132, in combination with a transactioninstrument configured to initiate a financial transaction between apayer and a payee.
 143. The combination according to claim 142, whereinsaid transaction instrument includes a paper/electronic check, a debitcard, a debit check, a credit card, or a smartcard.
 144. The combinationaccording to claim 142, wherein said transaction instrument includes apoint of sale (POS) terminal, a point of presentment (POP) terminal, apoint of escheat (POE) terminal, a point of data (POD) terminal, or anautomated teller machine (ATM).
 145. The combination according to claim142, wherein said transaction instrument includes a personal digitalassistant (PDA), a telephone, a cellular telephone, a cordlesstelephone, a pager, a watch, a television, a radio, a compact disc (CD)player, a tape player, a copier, a facsimile machine.
 146. The computeruseable medium according to claim 132, in combination with: (a) atelephone; and (b) means for demodulating transaction records from atelephone carrier signal.
 147. The computer useable medium according toclaim 132, in combination with: (a) a telephone; and (b) a voicerecognition device coupled to said telephone and said UPPD database.148. The computer useable medium according to claim 132 in combinationwith: plastic card financial instruments selected from a groupconsisting of credit cards, debit cards, stored value cards and smartcards.
 149. The computer useable medium according to claim 132, incombination with: an optical character recognition device.
 150. Thecomputer useable medium according to claim 132, in combination with: amagnetic-ink character recognition device.
 151. The computer useablemedium according to claim 132, in combination with: a digital technologyrecognition system.
 152. The computer useable medium according to claim132, in combination with: a fingerprint recognition system.
 153. Thecomputer useable medium according to claim 132, in combination with: aniris recognition system.
 154. The computer useable medium according toclaim 132, in combination with: a recognition system based on DNAtechnology.
 155. The computer useable medium according to claim 132, incombination with: a matrix technology recognition system.
 156. Thecomputer useable medium according to claim 132, wherein said initiatinga particular financial transaction step further comprises: providingparameters associated with a check number, an issue date, a payee, arouting number, and an account number.
 157. The computer useable mediumaccording to claim 132, wherein said initiating a particular financialtransaction step further comprises: providing parameters associated witha payer name, a payee name, payer personal specifics, payee personalspecifics, a transaction instrument, and an account number.
 158. Thecomputer useable medium according to claim 132, wherein said initiatinga particular financial transaction step further comprises: providingparameters associated with an account number.
 159. The computer useablemedium according to claim 152, wherein said providing parametersassociated with an account number step further comprises: providing achecking account number, a savings account number, a credit card accountnumber, a money market account number, a liability account number, abills/payable account number, an asset account number, aninvoice/receivables account number, a cash account number, an insurancepolicy account number, an account number for a will, or an accountnumber for a trust.
 160. The computer useable medium according to claim132, wherein said initiating a particular financial transaction stepfurther comprises: providing parameters associated with a personalidentification number (PIN).
 161. The computer useable medium accordingto claim 132, wherein said initiating a particular financial transactionstep further comprises: providing parameters associated with a digitalsignature.
 162. The computer useable medium according to claim 132,wherein said initiating a particular financial transaction step furthercomprises: providing parameters associated with biometric data.
 163. Thecomputer useable medium according to claim 162, wherein said providingparameters associated with biometric data step further comprises:providing parameters associated with DeoxyriboNucleic Acid (DNA), facialstructure, iris, retina, finger print, voice, or signature.
 164. Thecomputer useable medium according to claim 132, wherein said initiatinga particular financial transaction step further comprises: creating theIssue File based on an Automated Clearing House (ACH) based electroniccheck.
 165. The computer useable medium according to claim 132, whereinsaid initiating a particular financial transaction step furthercomprises: creating the Issue File based on an Electronic Funds Transfer(EFT) based electronic check.
 166. The computer useable medium accordingto claim 132, wherein said initiating a particular financial transactionstep further comprises: creating the Issue File based on an Internetinitiated payment.
 167. The computer useable medium according to claim132, wherein said initiating a particular financial transaction stepfurther comprises: creating the Issue File in accordance with the CheckTruncation Act.
 168. The computer useable medium according to claim 132,wherein said UPPD software further causes the processor to carry outsteps comprising: processing incoming/outgoing data for the UPPDdatabase in accordance with CHECK
 21. 169. The computer useable mediumaccording to claim 132, wherein said UPPD software further causes theprocessor to carry out steps comprising: searching and capturing checkregister information for abandoned property subject to escheat.
 170. Thecomputer useable medium according, to claim 132, wherein said UPPDsoftware further causes the processor to carry out steps comprising:automatically polling check register information for storage on saidUPPD database.
 171. The computer useable medium according to claim 132,wherein said UPPD software further causes the processor to carry outsteps comprising: performing a reconciliation of transaction recordparameter information.
 172. The computer useable medium according toclaim 132, wherein said UPPD software further causes the processor tocarry out steps comprising: locating lost, stolen, misplaced items anditems not presented and that remain outstanding.
 173. The computeruseable medium according to claim 132, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: archivingand storing check register, matching data, verification data, andauthentication data for a predetermined period of time.
 174. Thecomputer useable medium according to claim 132, wherein said UPPDsoftware further causes the processor to carry out steps comprising:performing a debit stall and stalled debit procedure.
 175. The computeruseable medium according to claim 132, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: making afinancial transaction history compilation for a payer who executesfinancial transactions based upon transaction record parameters. 176.The computer useable medium according to claim 132, wherein said UPPDsoftware further causes the processor to carry out steps comprising:compiling a behavior matrix for payers who execute financialtransactions based upon financial records associated with the executedfinancial transactions.
 177. The computer useable medium according toclaim 132, wherein said UPPD software further causes the processor tocarry out steps comprising: authenticating, authorizing, and clearingfinancial transactions executed by payers at a point of purchase, at apoint of presentment, and at a point of encashment.
 178. The computeruseable medium according to claim 132, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: enablingpayers who execute financial transactions to view their transactionrecords associated with the executed financial transactions inreal-time.
 179. The computer useable medium according to claim 132,wherein said UPPD software further causes the processor to carry outsteps comprising: transmitting a web-based form to said database via theInternet.
 180. The computer useable medium according to claim 132,wherein said UPPD software further causes the processor to carry outsteps comprising: obtaining financial transaction issue data from apayer/payee regarding a particular financial transaction; comparing theobtained financial transaction issue data with financial transactionissue data from a previously obtained data associated with theparticular financial transaction; identifying and sorting out exceptionitems for the obtained financial transaction issue data that do notmatch with the financial transaction issue data from the previously dataassociated with the particular financial transaction; making a NOPAY/PAY decision regarding the obtained financial transaction issuedata; notifying the payer/payee of the NO PAY/PAY decision that has beenmade regarding the obtained financial transaction issue data; creating apayer/payee Issue File; and uploading the Issue File to the UPPDdatabase.
 181. The computer useable medium according to claim 132,wherein said UPPD software further causes the processor to carry outsteps comprising: processing financial transactions to carry outdeletes, reversals, fraud filtering, stop pays, returns, or unauthorizedfinancial transactions.
 182. The computer useable medium according toclaim 181, wherein said processing financial transactions step furthercomprises: providing financial transactions as automated clearing house,electronic funds transfer, wire, or other money transfers.
 183. Thecomputer useable medium according to claim 181, wherein said processingfinancial transactions step further comprises: providing a UPPD viewableor hard copy statement for the payer/payee.
 184. The computer useablemedium according to claim 132, wherein said UPPD software further causesthe processor to carry out steps comprising: processing financialtransactions associated with payments from government, taxes,payer/payee, vendors, payroll, accounts payables, or direct deposits.185. The computer useable medium according to claim 184, wherein saidprocessing financial transactions step further comprises: providingfinancial transactions as automated clearing house, electronic fundstransfer, wire, or other money transfers.
 186. The computer useablemedium according to claim 184, wherein said processing financialtransactions step further comprises: providing a UPPD viewable or hardcopy statement for the payer/payee.
 187. The computer useable mediumaccording to claim 132, wherein said UPPD software further causes theprocessor to carry out steps comprising: processing accountreconciliation reporting for stop pays, reversed stop pays, voids,cancelled transactions, debit stalls, pay or not paid, returns, orpreauthorization on specific transactions.
 188. The computer useablemedium according to claim 187, wherein said processing accountreconciliation reporting step further comprises: providing a UPPDviewable or hard copy statement for the payer/payee.
 189. The computeruseable medium according to claim 132, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: creating anIssue File image report from archived/exchanged downloaded/uploadedimages on exception items for determination on pay or no pays.
 190. Thecomputer useable medium according to claim 189, wherein said creating anIssue File image report step further comprises: providing a UPPDviewable or hard copy statement for the payer/payee.
 191. The computeruseable medium according to claim 132, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: creating anIssue File image report of an electronically converted check or officialitem.
 192. The computer useable medium according to claim 191, whereinsaid creating an Issue File image report step further comprises:archiving the image report for substitute or replication by the UPPDsystem.
 193. The computer useable medium according to claim 132, whereinsaid UPPD software further causes the processor to carry out stepscomprising: processing enabled electronic bill pay or collections foraccounts receivable, bill payment, lock box, and drop box.
 194. Thecomputer useable medium according to claim 193, wherein said processingenabled electronic bill pay step further comprises: providing a UPPDviewable or hard copy statement for the payer/payee.
 195. The computeruseable medium according to claim 132, wherein said UPPD softwarefurther causes the processor to carry out steps comprising: processingenabled electronic bill pay or collections for accounts receivable, billpayment, lock box, and drop box.
 196. The computer useable mediumaccording to claim 195, wherein said processing enabled electronic billpay step further comprises: providing a UPPD viewable or hard copystatement for the payer/payee.
 197. The computer useable mediumaccording to claim 132, wherein said UPPD software further causes theprocessor to carry out steps comprising: receiving originationattributes associated with a transaction instrument to the UPPDdatabase; and storing the received origination attributes in the UPPDdatabase.
 198. The computer useable medium according to claim 132,wherein said providing origination attributes step further comprises:providing origination attributes including an origination entity, anorigination location, an origination date, an origination time, securityfeatures, biometrics, origination personnel, or origination shippingdate.
 199. The computer useable medium according to claim 132, whereinsaid UPPD software further causes the processor to carry out stepscomprising: enabling any transaction record for any financialtransaction to be processed with the UPPD software.